ORIX Rating Placed on "Negative Watch"

Published November 04, 2003, 3:00 p.m. EST

1 Min Read

Fitch Ratings has placed ORIX Capital Market's special servicer rating for commercial mortgage loans on "negative watch" due to strategies the company uses to work out troubled loans.Fitch said that in its opinion, the strategies "are more consistent with a Fitch rating of CSS2 or CSS3 than the current ORIX rating of CSS1. Stephany Petosa, a senior director at Fitch Ratings, said ORIX pursues resolution of perceived errors or loopholes in loan or deal documents "by initiating aggressive litigation." She said this strategy presents a risk to the financial interests of investors in the securities backed by the loans.

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