Fitch Upgrades KeyCorp's Primary & Master Servicer Ratings; Affirms Special Servicer.Business Editors NEW YORK--(BUSINESS WIRE)--June 13, 2003 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. upgrades KeyCorp Real Estate Capital Markets, Inc.'s (Key) primary servicer rating to 'CPS1-' from 'CPS2+' and its master servicer rating to 'CMS2+' from 'CMS2'. Fitch also affirms Key's special servicer rating of 'CSS2+'. Key's experienced management team and Key's proactive approach to staff for anticipated growth are considered in each rating. The primary servicer rating upgrade considers process improvements and the implementation of technology enhancements including a borrower web site and an insurance requirement tracking module. The master servicer rating upgrade is based on the completion of an investor module and soon to be released web site. The special servicer rating reflects Key's ability to workout, manage and liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the nonperforming loans and real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most (REO reo Noun NZ a language [Maori] ) properties in commercial mortgage-backed securities Commercial mortgage-backed securities (CMBS) are a type of bond commonly issued in American security markets. They are a type of Mortgage-backed security which are backed by mortgages on commercial rather than residential real estate. (CMBS CMBS See: Commercial Mortgage Backed Securities ) transactions. The ratings also reflect the financial condition of parent KeyCorp, and its demonstrated commitment to commercial mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. . As of March 31, 2003, Key's total servicing portfolio consisted of 4,423 loans totaling $20.7 billion, of which approximately $13.7 billion was CMBS. As of the same date, Key was named master servicer on 11 CMBS transactions, overseeing 14 primary servicers who serviced 157 loans totaling $905 million. Also as of March 31, 2003, Key was named special servicer on seven CMBS transactions totaling $4.7 billion and was special servicing 13 non-CMBS loans and REO totaling $32 million. Fitch rates commercial mortgage primary, master, and special servicers on a scale of 1 to 4, with 1 being the highest rating. Within each of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information about Fitch commercial mortgage servicer ratings or rating criteria, refer to the report titled 'Commercial Mortgage Servicer Rating Criteria', dated April 11, 2002 and available on the Fitch Ratings web site at 'www.fitchratings.com'. |
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