Morningstar Credit Ratings, LLC Raises Commercial Mortgage Special Servicer Ranking to 'MOR CS1' from 'MOR CS2' for Torchlight Loan Services, LLC

Mar 16, 2016, 16:00 ET from Morningstar, Inc.

NEW YORK, March 16, 2016 /PRNewswire/ -- Morningstar Credit Ratings, LLC today raised its commercial mortgage special servicer ranking to 'MOR CS1' from 'MOR CS2' for Torchlight Loan Services, LLC (Torchlight). Morningstar revised its forecast for the ranking to Stable from Positive.

Morningstar raised its commercial mortgage special servicer ranking for Torchlight based on the following factors:

  • Lengthy and excellent asset-recovery performance record for commercial mortgage-backed securities (CMBS);
  • Well-experienced management team and professional staff;
  • Return to operational stability;
  • Low employee turnover in 2015 after relocating most of its asset-management unit to Miami from New York City in early 2014.

The raised ranking also recognizes Torchlight's enhanced technology and reporting capabilities from its purchased asset-management system, diligent and controlled asset-resolution practices, and strengthened internal audit function.

Last year, Torchlight also launched a property-management company audit program for real-estate-owned assets and conducted four property-manager audits.

As of Dec. 31, 2015, Torchlight was the named special servicer on 32 CMBS transactions (including one Freddie Mac securitization) comprising 1,283 loans with an approximate unpaid principal balance (UPB) of $17.9 billion. The company was also the named special servicer on one commercial real estate collateralized debt obligation with a remaining UPB of $297.5 million containing 17 assets. Torchlight's total active special-servicing portfolio contained 69 loans and 58 REO properties with a combined UPB of approximately $1.7 billion. CMBS assets accounted for 98% of the active portfolio by asset count and by UPB.

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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.

Morningstar Credit Ratings, LLC is a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research in North America, Europe, Australia, and Asia.

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Morningstar rankings, forecasts, and assessments contained in this press release are not assessments of the creditworthiness of an obligor or a security and thus are not credit ratings subject to NRSRO regulations. 

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