Fitch Ratings has taken actions on several of its ratings of commercial-mortgage backed security (CMBS) loan servicers.
The agency has affirmed C-III Asset Management LLC's (C-III) primary servicer rating of CPS2- and its special-servicer rating of CSS1-, as well as affirmed Berkadia Commercial Mortgage LLC's primary servicer rating of CPS1- and its special-servicer rating of CSS1-. Additionally, Fitch has downgraded Berkadia's master-servicer rating to CMS2 from CMS2+.
Fitch's ratings of C-III, formerly formerly Centerline Servicing Inc., are based primarily on the company's experienced management team, commitment to technology and operational strength. In March, C-III Capital Partners LLC, an affiliate of Island Capital Group, completed the purchase of Centerline Capital Group's commercial real estate fund management, CDO management and special-servicing operations. Island Capital Group is a real estate merchant banking firm engaged in principal investment, investment management, and financial advisory and consulting services.
As of March 31, C-III's total primary servicing portfolio consisted of 1,973 loans totaling $19.3 billion, of which 11 loans totaling $150.2 million were CMBS.
Fitch's servicer ratings for Berkadia are based on the company's experienced management and staff with long company tenure, a knowledgeable asset management team, and Berkadia's familiarity in working out loan defaults. The primary driver of the master-servicer downgrade is weaker financial performance relative to Fitch's expectations.
Berkadia is owned by a joint venture between Berkshire Hathaway Inc. and Leucadia National Corp. As of March 31, Berkadia's total primary servicing portfolio consisted of 24,480 loans totaling $194.8 billion, of which 12,563 loans totaling $95.8 billion were CMBS.
