News Column

Fitch Affirms NCB, FSB's Servicer Ratings

June 23, 2014

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed NCB, FSB's commercial servicer ratings as follows:

--Primary servicer rating at 'CPS1-';

--Master servicer rating at 'CMS2-';

--Special servicer rating at 'CSS3+'.

The primary and master servicer ratings reflect Fitch's assessment of the company's highly experienced and tenured management team and staff, and robust technology platform and capabilities which support a strong internal control environment as well as timely and accurate reporting to investors and servicers. The primary and master servicer ratings also reflect the financial condition of NCB, FSB to support the servicing platform and advancing obligations as well as the bank's limited oversight of only two third-party servicers.

The special servicer rating reflects NCB, FSB's experienced asset management staff and their particular expertise in working out cooperative housing loans. The rating also considers the bank's limited staff and experience resolving traditional commercial real estate CMBS assets; however, NCB, FSB's active special servicing of commercial real estate loans has grown over the last five years providing more exposure to diverse property types. Assets per asset manager stood at 17:1 as of March 31, 2014, versus 15:1 as of year-end 2013.

As of March 31, 2014, NCB, FSB's total servicing portfolio consisted of 4,004 loans totaling $5.7 billion, consistent with prior years. NCB, FSB has experienced run-off in its CMBS portfolio as the bank paused CMBS originations during the economic downturn, and saw its non-CMBS book increase. As of March 31, 2014, by balance, 89% of the servicing portfolio was co-ops and 11% was commercial real estate (CRE), consistent with historical distributions. NCB, FSB's largest servicing clients by balance continue to be Fannie Mae (58%) and CMBS transactions (30%), for which NCB, FSB is master servicer.

The company acted as primary servicer, reporting to a third party master servicer on four CMBS transactions, servicing 14 CMBS loans totaling $22.3 million. Also as of March 31, 2014, NCB, FSB was named master servicer on 26 CMBS transactions, consisting of 691 loans totaling $1.6 billion and was named special servicer for 27 CMBS transactions consisting of 592 loans totaling $1.3 billion and actively specially servicing 11 CMBS loans totaling $56.1 million.

Since 2013, NCB, FSB originated $1.1 billion of CRE loans, of which approximately 75% are backed by cooperative housing properties. During 2013, the bank reentered the CMBS lending market and through 2014 NCB, FSB has contributed $319.1 million of new and seasoned co-op loans to two new issue transactions. Most of the co-op and CRE loans are contributed to CMBS transactions, and NCB, FSB is typically the master, primary and special servicer for the loans it contributes.

Fitch's servicer rating methodology is described in Fitch's reports 'U.S. Commercial Mortgage Servicer Rating Criteria,' dated Feb. 18, 2011, and 'Rating Criteria for Structured Finance Servicers' dated Feb. 6, 2013, available on Fitch's web site www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'U.S. Commercial Mortgage Servicer Rating Criteria' (Feb. 14, 2014);

--'Rating Criteria for Structured Finance Servicers' (Jan. 30, 2014).

Applicable Criteria and Related Research:

U.S. Commercial Mortgage Servicer Rating Criteria -- Effective Feb. 18, 2011 to Feb. 14, 2014

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005

Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731750

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=835854

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Primary Analyst

James Bauer

Director

+1-212-908-0343

Fitch Ratings, Inc.

33 Whitehall Street

New York, NY 10004

or

Secondary Analyst

Howard Miller

Director

+1-212-908-0737

or

Committee Chairperson

Adam Fox

Senior Director

+1-212-908-0869

or

Media Relations

Sandro Scenga, New York, +1-212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Business Wire


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters