Fitch Ratings has affirmed
The Rating Outlook for both ratings is revised to Negative from Stable.
RATING ACTIONS
Entity / Debt
Rating
Prior
Community Loan Servicing, LLC CMBS
Small Balance Commercial Primary Servicer
SBPS2+
Affirmed
SBPS2+
Small Balance Commercial Special Servicer
SBSS2+
Affirmed
SBSS2+
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VIEW ADDITIONAL RATING DETAILS
Key Rating Drivers
The rating affirmations reflect CLS's effective servicing of primary and special SBC mortgage loans, effective systems and technology, strategic growth objectives, and experienced senior management team and staff. The ratings also take into consideration CLS's organizational realignment and the outsourcing of certain functions to a third-party servicer.
The Outlook revision to Negative was based on CLS experiencing two material instances of non-compliance (MINC) with its 2023
As of
CLS expects to continue to grow strategically through (i) servicing of loans acquired by Opportunity Funds managed by a CLS affiliate,
The servicer evidences a highly developed core senior management team. CLS continues to develop its bench strength and expanding cross-training among the existing commercial servicing staff. For this review period, CLS experienced 2.90% turnover it its senior management team and 17.39% in its general staffing. The servicer demonstrates an effective recruitment and retention program.
CLS is the servicing arm of Bayview Asset Management and provides full-service small balance commercial, and commercial loan special servicing from its main location in Coral Gables and Ft. Lauderdale in FL. Fitch does not publicly rate the credit and financial strength of CLS or its parent. However, Fitch's financial institutions group reviewed CLS's financial statements to provide an internal assessment, as a company's financial condition is a component of Fitch's servicer rating analysis.
As of
Additional information is available on www.fitchratings.com
PARTICIPATION STATUS
The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.
APPLICABLE CRITERIA
Criteria for Rating Loan Servicers (pub.
Criteria for Rating North American Commercial Mortgage Servicers (pub.
ADDITIONAL DISCLOSURES
Solicitation Status
Endorsement Policy
ENDORSEMENT STATUS
Community Loan Servicing, LLC -
DISCLAIMER & DISCLOSURES
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Solicitation Status
The ratings above were solicited and assigned or maintained by Fitch at the request of the rated entity/issuer or a related third party. Any exceptions follow below.
Endorsement Policy
Fitch's international credit ratings produced outside the EU or the
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