NEW YORK, Feb. 12, 2016 /PRNewswire/ -- Morningstar Credit Ratings, LLC today affirmed its 'MOR CS3' commercial mortgage primary servicer ranking for Bank of New York Mellon (BNY Mellon). Morningstar's forecast for the ranking remains Stable.
Morningstar affirmed its ranking based on BNY Mellon's demonstrated portfolio management and investor-reporting capabilities for legacy transactions principally involving franchise-loan and other commercial-mortgage securitizations, net-leased properties, and industrial-development revenue bonds. The ranking also reflects the company's experienced staff and management, low employee turnover, sound loan-administration practices, adequate internal audit function, and supplemental independent quality-control program. BNY Mellon has an acceptable technology environment for commercial-mortgage servicing, although the company may gain processing efficiency and data-management control by further leveraging the capabilities of its servicing system for certain portfolio management functions and integrating it with other applications.
The Stable forecast for the ranking reflects Morningstar's expectation that BNY Mellon, based on its organizational infrastructure, performance history, and operating practices, will remain a competent commercial mortgage primary servicer for securitizations and other third-party investors. Morningstar will continue to monitor the company's efforts to rebuild the portfolio, which continues to shrink in size.
As of Dec. 31, 2015, BNY Mellon's total servicing portfolio consisted of 132 loans with an unpaid principal balance (UPB) of nearly $1.5 billion, including 21 master-serviced-only loans with a UPB of approximately $27.1 million. The portfolio primarily consisted of 23 securitized or industrial-development revenue-bond transactions issued between 1993 and 2006.
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Morningstar Credit Ratings, LLC is a nationally recognized statistical rating organization (NRSRO) offering a wide array of services including new-issue ratings and analysis, operational risk assessments, surveillance services, data, and technology solutions.
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