Fitch Ratings maintained the Rating Watch Evolving (RWE) on
RATING ACTIONS
Entity / Debt
Rating
Prior
CMBS Primary Servicer
CPS2-
Rating Watch Maintained
CPS2-
CMBS Special Servicer
CSS3+
Rating Watch Maintained
CSS3+
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VIEW ADDITIONAL RATING DETAILS
Key Rating Drivers
The primary servicer rating reflects Sabal's knowledgeable yet small management team, highly experienced servicing staff, well-integrated servicing systems yielding strong reporting abilities for quality control and streamlined loan boarding, and sufficient controls with improving but still limited independent internal reviews. The rating also reflects the company's strong primary servicing experience including a concentration in loans secured by multifamily properties and robust asset administration capabilities.
The special servicer rating reflects the small size of the special servicing group including three asset managers and the demonstrated ability to draw upon internal resources for additional staffing depth, the company's workout history including resolving
The RWE status reflects the
Sabal is the servicing arm and wholly owned subsidiary of SCP, which, in turn, is wholly owned by
Historically, SCP and its predecessor companies have mainly acquired and serviced portfolios of distressed and performing assets, including FDIC CRE portfolios and securitized nonperforming loan (NPL) transactions. Today, SCP predominately originates loans guaranteed by the
Through affiliates registered as investment advisory firms, the platform's fund business invests in B-pieces of Freddie Mac SBL loan securitizations and CMBS transactions as well as the company's bridge loans.
Sabal maintains one of the smallest special servicing staff sizes across Fitch rated servicers, which is appropriate relative to the company's current and expected portfolio over the short term. As of
Sabal's dedication to customizing servicing systems to provide robust quality control and reporting features is a strength. The SNAP application provides Sabal with a document management system containing robust OCR technology streamlining loan boarding and a website for borrowers with one of the highest usage rates among Fitch rated servicers. There haven't been material changes to servicing systems recently as technology improvements focused on cybersecurity and expanding SNAP underwriting capabilities for new lending products.
Sabal's compliance group recently began formal quarterly reviews of primary servicing operations. While Fitch views positively that compliance reviews of servicing operations have begun, they have limited demonstrated proficiency and do not currently include special servicing operations given the low volume of defaults. However, Sabal's emphasis on technology-driven quality controls is appropriate for its size and the servicing group's quality control program partially mitigates Fitch's concern.
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 North American Commercial Mortgage Servicers (pub.
Criteria for Rating Loan Servicers (pub.
ADDITIONAL DISCLOSURES
Solicitation Status
Endorsement Policy
ENDORSEMENT STATUS
SCP Servicing, LLC -
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