Fitch Upgrades Specialized Portfolio Servicing Ratings

Specialized Portfolio Servicing LLC, Salt Lake City, Utah, has had its primary servicer ratings for alt-A, subprime and home equity lines of credit upgraded by Fitch Ratings, New York, from "RPS3+" to "RPS2-." The company's residential special servicer rating and residential primary specialty servicer rating for second lien products received the same upgrade. Fitch cited the company's seasoned management team, technology enhancements and improvements in customer service and default management, which have increased its ability to proactively target problem accounts. The special servicer rating reflects Specialized Portfolio Servicing's "ability to liquidate nonperforming assets utilizing its focused default management expertise." These ratings also reflect the company's ability to attract, hire and retain key employees. It also reflects the ratings of its parent company, Shinsei Bank Ltd., which are "BBB/F2" with a negative outlook. Specialized Portfolio Servicing has a portfolio with an unpaid principal balance of $9.35 billion, of which 2.3% is special servicing. Approximately 37% of the loans are first lien and 63% second lien. By product it includes 20% subprime loans, 28% closed end seconds, 8% HELOCs and 6% alt-A.