Fitch Affirms ORIX Capital Markets' Special Servicer Rating

  Fitch Affirms ORIX Capital Markets' Special Servicer Rating

Business Wire

NEW YORK -- August 8, 2014

Fitch Ratings affirms ORIX Capital Markets, LLC's (OCM) commercial
mortgage-backed securities (CMBS) special servicer rating at 'CSS2'.

The special servicer rating reflects Fitch's assessment of the company's
strong management and experienced asset managers, internal controls with
thorough policies and procedures and use of technology for quality control, as
well as the financial strength of OCM's ultimate parent, ORIX Corporation. The
rating also reflects OCM's 24 month internal audit cycle and limited but
flexible staffing structure.

The rating reflects stabilization of turnover since Fitch's last review; in
the last 12 months, OCM experienced overall turnover of 7% as one staff level
employee left the company. In 2013, the company experienced overall turnover
of 92% in conjunction with a large reduction of active special servicing
volumes through a bulk sale. Subsequent to the staff reduction, OCM retained
an experienced asset management team of seven with over 21 years of experience
and maintains a strong leadership team with two senior managers and three
middle managers averaging 27 years of experience.

As of June 30, 2014, OCM was named special servicer for 235 loans totaling
$902.3 million in CMBS transactions and is in the process of working out 18
CMBS loans totaling $198.7 million (including REO). Of these, office and
retail properties form the majority of assets. OCM's non-CMBS book totaled 26
loans and $166.2 million, and included 15 REO properties totaling $123.2
million. In 2014 ORIX USA and OCM hired new management teams, including a CEO
and CIO, with a plan to grow special servicing assignments by leveraging the
company's lending platform and CMBS investments.

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 U.S. Commercial Mortgage Servicers

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

Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731750

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=847954

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Contact:

Fitch Ratings
Primary Analyst
James Bauer, +1 212-908-0343
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Adam Fox, +1 212-908-0869
Senior Director
or
Committee Chairperson
Christopher Bushart, +1 212-908-0606
Senior Director
or
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sandro.scenga@fitchratings.com
 
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