Fitch Affirms Bank of New York & Mellon Financial CMBS Servicer Ratings After Merger Announcement

Strategic Insights -

The proposed merger between The Bank of New York Company, Inc. (BK) and Mellon Financial Corporation (MEL) has sparked interest in the commercial mortgage-backed securities (CMBS) market. As a result of the merger, Fitch Ratings will closely monitor the impact on the CMBS servicer ratings of Bank of New York Asset Solutions Division (BNYAS). According to a press release from The Bank of New York, Fitch does not anticipate taking any ratings actions regarding the CMBS servicer rating at this time due to the proposed merger.

Key Takeaways:

  • The Bank of New York Asset Solutions Division (BNYAS) is a Fitch-rated commercial mortgage-backed securities (CMBS) servicer with ratings as follows: Primary servicer rating 'CPS3+', Master servicer rating 'CMS3', and Special servicer rating of 'CSS3'.
  • The proposed merger between The Bank of New York Company, Inc. (BK) and Mellon Financial Corporation (MEL) does not anticipate any ratings actions on BNYAS' CMBS servicer ratings at this time.
  • The merger does not expect to take any ratings action on the listed transactions where BNYAS is named servicer or master servicer, including 1211 Avenue of Americas, Beckman Coulter, Inc., Series BC 2000-A, Commercial Capital Access One Series 2, and others.
  • Fitch will closely monitor any impact the merger may have on BNYAS' servicer ratings and on the ratings of the transactions referenced above.
  • Fitch rates commercial mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating, with further differentiation by plus (+) and minus (-) as well as flat ratings.

Statistics:

  • First rating of Bank of New York Asset Solutions Division was done in June 2006, where it was rated as 'CPS3+', 'CMS3', and 'CSS3'.
  • Fitch rates commercial mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating.
  • BNYAS is one of the largest commercial mortgage-backed securities servicers in the US.

Sources:

  • The Bank of New York press release, Dec. 4, 2006.
  • Fitch Affirms Bank of New York & Mellon Financial on Merger Announcement; Outlook to Positive, Dec. 4, 2006.
  • Rating U.S. Commercial Mortgage Servicers, June 9, 2006.
  • Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures available from the 'Code of Conduct' section of the Fitch Ratings website.