Fitch Ratings has affirmed the PGIM Real Estate Loan Services, Inc.'s (PGIM Loan Services, or the company) commercial mortgage servicer ratings as follows.

RATING ACTIONS

Entity / Debt

Rating

Prior

Prudential Asset Resources

CMBS Loan Level Special Servicer

CLLSS2

Affirmed

CLLSS2

CMBS Master Servicer

CMS2+

Affirmed

CMS2+

CMBS Primary Servicer

CPS1

Affirmed

CPS1

Page

of 1

VIEW ADDITIONAL RATING DETAILS

Key Rating Drivers

The affirmation of the primary and master servicer ratings reflect the company's experienced and stable servicing management and staff, as well as its robust internal control environment including policies and procedures supporting the servicing of commercial mortgage loans, as well as the continued enhancement and extensive use of technology. The primary servicer rating also reflects the company's continued demonstrated servicing capabilities at the highest levels of servicing proficiency. The master servicer rating also considers PGIM Loan Services' limited experience overseeing external primary servicers.

The affirmation of the special servicer rating is based on Fitch's assessment of the workout experience of the group, internal controls, limited use of special servicing technology and shared staffing model which remains appropriate for the number of specially serviced loans. Fitch believes PGIM Loan Services has demonstrated proficiency adjusting its special servicing staffing needs relative to market conditions, and that the size of the group is appropriate in relation to the demands of the current special servicing portfolio.

PGIM Loan Services is the commercial real estate loan servicing subsidiary of PGIM Real Estate Finance, LLC (PGIM REF), a wholly owned subsidiary of Prudential Financial, Inc (PFI). All the servicer ratings incorporate PFI's financial strength and its demonstrated ongoing commitment to originating and servicing commercial mortgage loans across all property types and markets. The company performs loan servicing predominately for loans originated by PGIM REF that are held in the company's general account, securitized in structured finance transactions, or originated for government-sponsored enterprises (GSE) or other institutional investors.

The company's commercial servicing portfolio predominately non-securitized insurance company loans on behalf of PGIM RE and affiliates, representing 43% of the portfolio by loan count. The company also performs servicing for GSEs and institutional investors, representing 32% and 11% of the portfolio by loan count, respectively. PGIM RE and affiliates domestic loan originations are focused on core, core+ and high-yield debt strategies and the company began servicing PGIM RE's domestic core debt fund representing 47 loans totaling $685 million in 2021.

Additionally, international servicing continues to grow as a result of affiliate investments funds, the most recent being PRECap VII fund, a value-add real estate fund targeting transitional European assets. As of Sept. 2021, PGIM Loan Services was servicing 217 loans totaling $9.4 billion across seven currencies, 8% of the total portfolio by balance representing one of the largest and most diverse international portfolios of Fitch-rated servicers in North America.

PGIM Loan Services has been servicing CRE loans since 1898 and continues to remain active in the servicing and origination of CRE loans, particularly for the general account, affiliate investment funds, and the GSEs. Servicing functions performed by the company are key to supporting the CRE originations of PGIM RE, providing a steady flow of new business. The company also continues to invest in technology to improve efficiency and the borrower experience.

PGIM Loan Services maintains staff onshore as well as offshore through an affiliate. The primary and master servicing management team of 36 collectively average 22 years of industry experience and 14 years of tenure, while 112 staff members average 16 and seven years, respectively. Turnover was limited to 15 staff-level separations, including two offshore employees, resulting in aggregate turnover of 11% domestically and 10% overall, down from 13% domestic turnover the prior year. The special servicing group consists of one senior manager, one middle manager and one staff-level employee. Employees completed 30 hours of training in 2021 consistent with the prior year.

The company maintains a highly integrated technology infrastructure for loan servicing anchored by McCracken's Strategy (version 19D) and supplemented by a proprietary application to support loan originations, asset management and workflow. The company also maintains propriety applications for borrower and investor communications, as well as a data warehouse. Recent technology enhancements include modernization of borrower portal with added functionality to allow for the submission of required documents, new bulk email capability to efficiently contact borrowers impacted by significant events, enhancements to currency converters and the ability to store stop rates and accrual calculation enhancements.

PGIM Loan Services has a dedicated business strategy and support group that is responsible for measuring performance, compliance and accuracy through a comprehensive process that includes monitoring over 250 metrics. The company is also subject to an internal audit review by the parent of PGIM RE, PGIM, Inc., a subsidiary of PFI, as well as external Regulation AB and various third-party client audits.

As of Sept. 30, 2021, PGIM Loan Services total servicing portfolio consisted of 4,924 loans totaling $119.9 billion, of which 643 loans totaling $11.2 billion are securitized in structured finance transactions. Special servicing and asset management duties are exclusively for PGIM REF-originated and retained CRE loans. The special servicing group provides asset resolution support for all affiliate capital business lines secured by CRE assets.

As of the same date, the company was named special servicer for 3,102 non-securitized loans totaling $85.9 billion, of which the company was actively working out seven defaulted loans totaling $327.8 million. PGIM Loan Services resolved nine CRE loans totaling $179.2 million during the 12-month period ended in September 2021, with the return of two loans to performing status, four full payoffs, one note sale, and two through foreclosures.

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. 22 Jan 2020)

Criteria for Rating Loan Servicers (pub. 08 Feb 2020)

ADDITIONAL DISCLOSURES

Solicitation Status

Endorsement Policy

ENDORSEMENT STATUS

PGIM Real Estate Loan Services, Inc.

(C) 2022 Electronic News Publishing, source ENP Newswire