|[August 06, 2014]
Fitch Take Various Actions on Pacific Life Insurance Company's Commercial Servicer Ratings
NEW YORK --(Business Wire)--
Fitch Ratings has taken the following actions for Pacific Life Insurance
Company (Pacific Life):
--Commercial master servicer rating affirmed at 'CMS2+' and withdrawn;
--Commercial special servicer rating affirmed at 'CSS2' and withdrawn;
--Commercial loan level special rating assigned at 'CLLSS2+';
--Commercial primary servicer rating affirmed at 'CPS1'.
The withdrawal of the master servicer rating is due to insufficient
information necessary to maintain it, as Pacific Life has elected not to
maintain its master servicer rating. Pacific Life is no longer acting as
master servicer for any Fitch rated transactions and has no plans to
perform master servicing in the future, as such, it is no longer
considered by Fitch to be relevant to the agency's coverage.
The assignment of a loan level special servicer rating and simultaneous
affirmation and withdrawal of the conduit special servicer rating
reflects Pacific Life's special servicing infrastructure which, while
appropriate for its current portfolio and business plan, is focused on
special servicing individual loans rather than securitized transactions
of multiple loans. Fitch's loan level special servicer rating is
assigned to special servicers typically engaged to manage individual
loans (vs. portfolio or multiborrower CMBS transactions), have smaller,
specialized staff and portfolio or workout volumes that do not require
the staff and technology infrastructure associated with special
servicing large pools of loans. Fitch believes the loan level special
servicer rating, rather than conduit, better reflects the company's
small group of tenured and experienced asset managers, technology
infrastructure for special servicing and business plan.
The affirmation of the primary servicer ratings reflect Fitch's
assessment of the company's ability to effectively service commercial
mortgage loans, technology, and its robust internal control environment.
Each of the ratings take into consideration the company's highly
experienced and tenured servicing management and staff, $1 billion - $2
billion per year of new, directly serviced commercial mortgages loan
origination, and the investment grade financial strength of the company.
As of March 31, 2014, Pacific Life was servicing 629 commercial real
estate loans totaling $17.8 billion in outstanding balance. As of the
same date the company was named special servicer for 533 loans totaling
$10.1 billion of whih five loans totaling $113.3 million were in
default and Pacific Life was managing three foreclosed properties in
real estate owned inventory representing $3.0 million in outstanding
balance. The company's legacy conduit CMBS transactions, which represent
11% of its total named special servicing portfolio, continue to payoff
and new CMBS special servicing assignments are loan level assignments in
conjunction with mezzanine and B-note investments. Non-securitized
loans, which represent a majority of Pacific Life's named special
servicing portfolio, are balance sheet loans originated by Pacific Life
and private client loans.
The servicer rating is based on the methodology described in Fitch's
reports 'U.S. Commercial Mortgage Servicer Rating Criteria,' dated Feb.
14, 2014, and 'Rating Criteria for Structured Finance Servicers,' dated
Jan. 30, 2014, 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:
Rating Criteria for Structured Finance Servicers
Rating Criteria for U.S. Commercial Mortgage Servicers
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.
AVAILABLE ON (News - Alert) 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
[ InfoTech Spotlight's Homepage ]