Fitch Affirms Hudson Americas LLC's CMBS Servicer Ratings

Fitch Ratings affirms the commercial mortgage servicer ratings for Hudson Americas LLC (Hudson), as follows:

--Primary servicer rating at 'CPS3+';

--Special servicer rating at 'CSS2'.

The primary servicer rating reflects the company's effective primary servicing operations albeit for a small loan portfolio. The special servicer rating considers Hudson's demonstrated ability to work out and liquidate commercial real estate (CRE) loans as well as its history with its affiliate Lone Star Funds which has been successful at fundraising through the economic cycles. Both ratings consider the company's commitment to technology and the hiring of experienced employees to manage a larger CMBS and CRE portfolio.

As of Sept. 30, 2013, Hudson was named special servicer for 96 loans in one CMBS transaction sponsored by Lone Star, totaling $188.2 million, and was actively specially servicing 10 CMBS loans totaling $30.9 million. In addition, the company was special servicing 1,417 non-CMBS loans including real estate owned (REO) with $4.8 billion unpaid principal balance (UPB). As of the same date, the company was primary servicing 375 non-performing loans with an UPB of $1.2 billion.

Hudson Americas is the U.S. subsidiary of Hudson Advisors, a full-service CRE and asset management company with affiliates worldwide. Hudson Advisors was established to underwrite, manage, restructure, and service CRE assets of the Lone Star funds.

The servicer rating is based on the methodology described in Fitch's reports 'U.S. Commercial Mortgage Servicer Rating Criteria,' dated Feb. 18, 2011, and 'Global Rating Criteria for Structured Finance Servicers' dated Aug. 16, 2010, available on Fitch's web site 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'U.S. Commercial Mortgage Servicer Rating Criteria' (Feb. 18, 2011);

--'Global Rating Criteria for Structured Finance Servicers' (Aug. 16, 2010).

Applicable Criteria and Related Research:

Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=699690

U.S. Commercial Mortgage Servicer Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=816900

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Howard Miller
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