| Concern is growing over whether the nation's third biggest servicer of commercial mortgages can afford to operate -- and keep its servicing portfolio.
Fitch Ratings lowered the primary servicer rating of Capmark Finance Inc. for commercial mortgage-backed securities to CPS2- from CPS1-, a press release today said. In addition, Capmark's master servicer rating was downgraded to CMS3- from CMS1-, and its special servicer rating was cut to CSS2- from CSS1.
Fitch rates servicers on a scale of one-to-five, with one being the strongest. Plus and minus signs further differentiate the ratings.
Fitch said that Capmark's CMS3- master servicer rating is the lowest acceptable rating under the company's pooling and servicing agreements.
"A downgrade below this level would necessitate a transfer of servicing due to the advancing obligations of the master servicer," the statement said.
Fitch recently downgraded the debt of parent Capmark Financial Group.
The New York ratings agency said it is concerned about Capmark's ability to service securitized loans. Retaining adequate staff and meeting advancing obligations are among Fitch's biggest concerns.
Capmark serviced 34,040 loans for $250.8 billion as of Dec. 31, 2008. Included in its servicing portfolio were 17,659 loans for $136.6 billion from 295 CMBS. Its $49.2 billion special servicer portfolio included 150 CMBS loans for $1.1 billion being actively special serviced and 43 real estate owned properties for $0.3 billion being managed.
The Mortgage Banker Association ranked Capmark as the third biggest U.S. servicer of commercial mortgages as of Dec. 31, 2008.
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