Fitch Affirms Berkeley Point's Servicer Ratings

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings affirms the commercial real estate servicer ratings for Berkeley Point Capital LLC (BPC), as follows:

--Commercial primary servicer at 'CPS2';

--Commercial special servicer at 'CSS3+'.

The primary servicer rating reflects an assessment of the company's experienced management team, effective use of technology, concentration in multifamily properties, as well as the materiality of servicing functions outsourced to Midland Loan Services through a private label shared-services arrangement. The rating also considers that BPC's primary servicing platform was subject to its first Reg AB audit in 2014 in which there were no findings.

BPC's servicing platform includes a longstanding shared services relationship with Midland since 2006. Through the agreement, Midland performs certain servicing functions such as cash management, taxes and insurance, while BPC retains responsibility for customer service, investor reporting, asset administration, and oversight of Midland performed functions. Fitch views positively BPC's ability to manage the contracted services, and recognizes the presence of alternative service providers available in the market, as well as the low likelihood of an unforeseen termination of the outsourcing relationship. Fitch believes BPC's existing staff has the ability to perform contracted services in-house, but expects additional resources would be required to meet capacity needs. The degree and materiality to which servicing processes are performed outside the rated servicer limit the ratings to the 'CPS2' category.

The special servicer rating reflects the company's special servicing platform which is currently focused on multifamily properties for government-sponsored enterprises (GSE). Workout functions are performed in consultation with the GSEs until fore. Fitch believes this is mitigated by experience of the special servicing team with other asset types and real estate owned (REO) dispositions. Additionally, if necessary, it can draw resources from the primary servicing platform.

Both ratings reflect that the company has changed ownership groups twice since 2012, most recently when acquired by Cantor Commercial Real Estate Company, L.P. (CCRE) in 2014. Fitch performed a financial assessment of BPC on a stand-alone basis and determined that its short-term financial viability is adequate to support the servicing platform.

BPC has been originating and servicing multifamily GSE CRE loans since 1987. Subsequent to its acquisition by CCRE, BPC began primary and limited sub-servicing for CCRE CMBS loans providing experience with non-multifamily CRE property types and non-agency servicing.

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 April 23, 2015, available on Fitch's web site www.fitchratings.com.

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

Applicable Criteria

Rating Criteria for Structured Finance Servicers (23 Apr 2015)

Rating Criteria for U.S. Commercial Mortgage Servicers (14 Feb 2014)

Applicable Criteria

Rating Criteria for Structured Finance Servicers (pub. 23 Apr 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864375

Rating Criteria for U.S. Commercial Mortgage Servicers (pub. 14 Feb 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=988805

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150730006745/en/

Fitch Ratings
Primary Analyst
Howard Miller
Director
+1-212-908-0737
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Secondary Analyst
James Bauer
Director
+1-212-908-0343
or
Committee Chairperson
Daniel Chambers
Managing Director
+1-212-908-0782
or
Media Relations
Alyssa Castelli, New York, +1-212-908-0540
[email protected]

Source: Fitch Ratings

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