Fitch Ratings has placed Situs Asset Management's commercial mortgage-backed securities (CMBS) special servicer rating of CSS3+ on Rating Watch Positive.
The rating action is the result of Helios AMC LLC's recent purchase of Situs' parent company, The Situs Cos., which Fitch views as a positive. According to Fitch, Helios brings strong asset management and workout experience to the platform.
Helios announced the acquisition earlier this month. Prior to the deal, Helios was rated CSS2 by Fitch. Fitch announced this week that it has withdrawn that rating.
As of the end of June, Situs was named special servicer on two CMBS transactions totaling $133.1 million and was not actively working out CMBS loans. As of the same date, Helios was named the special servicer for 13 CMBS transactions with 2,010 loans totaling $26.9 billion. Also as of the same date, Helios had 185 loans in special servicing totaling $3.3 billion and was actively working out 23 REO properties totaling $272.7 million.
The combined platform, which will operate under The Situs Cos. name, will integrate the senior management of both companies and be headquartered in Houston. Fitch says it expects to resolve the Rating Watch Positive over the next 90 days and is likely to affirm the primary servicer rating following a full operational review.
