FEB 1, 2013 5:43pm ET

Fitch Affirms B of A, BNY Mellon CMBS Servicing Ratings

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Fitch Ratings affirms the commercial mortgage-backed security servicer ratings of Bank of America and BNY Mellon based on their experience, technology and management expertise.

Fitch affirms B of A’s CMBS primary servicer rating at CPS1, its master servicer rating at CMS2+ and its special servicer rating at CSS2.

B of A’s master and primary servicer ratings reflect the bank’s overall experience and “strong internal control environment.” Its special servicer rating reflects asset management experience, including its ability “to resolve defaulted loans,” as well as efficient policies and procedures when it comes to mitigating potential conflicts of interest with third-party clients, Fitch said.

The ratings indicate a healthy financial condition and commitment to servicing a commercial mortgage portfolio of 9,497 loans with a principal balance of $110.5 billion (of which 3,346 loans totaling $70 billion were CMBS as of June 30, 2012).

Fitch affirms the CMBS servicer rating for BNY Mellon at CPS2 for its primary servicing portfolio, at CMS3+ for master servicing, and at CSS3 for special servicing.

As of Sept. 30, 2012, BNY Mellon’s total commercial mortgage servicing portfolio consisted of 469 loans totaling $3.7 billion.

The primary servicer rating reflects only in part “the company's ability to effectively service mortgage loans in CMBS transactions,” Fitch said.

While each of the ratings is based on the financial strength of BNY Mellon, the ratings agency noted, the master servicer rating also reflects an assessment of BNY Mellon's procedures and controls for reporting and remitting to CMBS trustees. The special servicer rating also “reflects BNY Mellon's limited traditional commercial real estate portfolio.”

As of Sept. 30, 2012, BNY Mellon was the master servicer on seven transactions comprised of 104 CMBS loans totaling $3.5 billion and was the named special servicer of 10 loans included in three CMBS transactions totaling $3 billion.

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