Fitch Takes Various Actions on HFF's Commercial Servicer Ratings

NEW YORK--(BUSINESS WIRE)--

Fitch Ratings has taken the following rating actions on Holliday Fenoglio Fowler, L.P. (HFF):

--Commercial primary servicer affirmed at 'CPS2';

--Commercial special servicer affirmed at 'CSS3' and withdrawn;

--Commercial loan level special servicer rating assigned at 'CLLSS3'.

The assignment of a loan level special servicer rating and simultaneous affirmation and withdrawal of the conduit special servicer rating reflects the limited basis in which the company special services non-performing loans, experience of the company's portfolio managers shared between primary and special servicing, and limited technology to perform special servicing for a large volume of defaulted loans.

Fitch's loan level special servicer rating is assigned to special servicers that typically have smaller, specialized staff and portfolios or workout volumes that do not require the staff and technology infrastructure associated with special servicing large pools of loans.

Eight portfolio managers responsible for special servicing (in addition to primary servicing) average 23 years of industry experience. Fitch believes HFF's portfolio managers have suitable experience for the limited special servicing functions performed; however, highly rated special servicers typically have more asset disposition experience. The scalability of HFF's special servicing group is somewhat limited compared to highly rated special servicers; however, HFF employs nine analysts in the primary servicing group responsible for support functions such as financial statement spreading.

The primary servicer rating reflects Fitch's assessment of HFF's experienced and tenured management and staff, the company's long history as a commercial mortgage primary servicer, including for life insurance companies, Freddie Mac, and its demonstrated ability to effectively primary service CMBS loans. Both ratings also reflect the company's financial condition, adequate internal controls and the broad real estate resources of HFF.

The servicer rating is based on Fitch's methodology, as described in the reports highlighted at the end of the press release.

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:

Rating Criteria for Structured Finance Servicers

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

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=944876

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