Fitch Downgrades Capmark’s CMBS Servicer Ratings

Fitch Ratings has downgraded Capmark Finance Inc.'s commercial mortgage-backed securities (CMBS) servicer ratings.

Capmark's primary servicer rating dropped from CPS1- to CPS2-, its master servicer rating fell from CMS1- to CMS3- and the company's special servicer rating fell from CSS1 to CSS2-.

In addition, Fitch has placed all of Capmark's CMBS servicer ratings on Rating Watch Negative. The actions follow Fitch's recent downgrade and placement on Rating Watch Negative of Capmark's parent company, Capmark Financial Group, to B- from BBB-.

Fitch cites concerns regarding Capmark's ability to operate as a CMBS servicer, including retaining adequate staff and meeting its advancing obligations. The rating agency deems the master servicer rating of CMS3- on Rating Watch Negative sufficient to meet the minimum requirements for current pooling and servicing agreements that it services. A downgrade below this level would necessitate a transfer of servicing due to the advancing obligations of the master servicer.

As of Dec. 31, 2008, Capmark's total primary servicing portfolio comprised 34,040 loans with an unpaid principal balance of $250.8 billion, of which 17,659 loans totaling $136.6 billion were in 295 CMBS transactions. The company was named special servicer on 116 CMBS transactions with an outstanding balance of $49.2 billion, actively specially servicing 150 CMBS loans totaling $1.07 billion and managing 43 CMBS real estate owned properties valued at $267 million.

SOURCE: Fitch Ratings


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