The primary, master, and special servicer ratings of Orix Capital Markets, Dallas, have been downgraded by Fitch Ratings.The primary servicer rating was lowered from CPS1 to CPS2, the master servicer rating was lowered from CMS1 to CMS2, and the special servicer rating has been lowered from CSS1 to CSS3 and removed from Rating Watch Negative. Fitch said the primary and master servicer rating downgrades were based on "a decline in overall servicing performance," citing concerns that its performance regarding the processing and approval of borrower requests for assumptions, lease approvals and terminations, and other lender consents "is not as timely as it needs to be and is inconsistent with the performance expected of Fitch's highest-rated servicers." The special servicer rating downgrade was based partly on a high annual employee turnover rate in the special servicing group over the past two years (29% in 2003 and 41% in 2002) and partly on the company's heavy use of litigation as a loan resolution strategy, the rating agency said. Fitch can be found online at http://www.fitchratings.com.
