Fitch Places GGR, FKA Z-SAM, CMBS Special Servicer Rating on Rating Watch Negative

Mon Jan 23, 2012 3:21pm EST

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Fitch Places GGR, FKA Z-SAM, CMBS Special Servicer Rating on Rating Watch Negative

Fitch Ratings places the special servicer rating for GGR Servicing Asset Management, LLC (GGR), formerly known as ZAIS Servicing Asset Management LLC (Z-SAM), on Rating Watch Negative. GGR is the new name of the Z-SAM entity after a re-capitalization of the company resulted in a new ownership structure. Z-SAM was previously wholly owned by ZAIS Group LLC (ZAIS Group), a privately owned investment manager. ZAIS Group retains a minority non-managing equity interest in GGR.

Since Fitch's last review of the company in August 2011, significant staffing changes have occurred, raising concerns regarding the depth of the company's special servicing staff. In addition, the company's re-capitalization in November 2011 has raised concerns about the financial stability of the newly created entity. Fitch expects to receive further information in the coming weeks to resolve the Rating Watch Negative.

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.

Fitch has placed the following rating on Rating Watch Negative:

GGR Servicing Asset Management, LLC

--Special servicer rating 'CSS3'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

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:

U.S. Commercial Mortgage Servicer Rating Criteria

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

Global Rating Criteria for Structured Finance Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547305

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Fitch Ratings
Primary Analyst
James Bauer
Associate Director
+1-212-908-0343
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Howard Miller
Director
+1-212-908-0737
or
Committee Chairperson
Daniel Chambers
Managing Director
+1-212-908-0782
or
Brian Bertsch
+1-212-908-0549
brian.bertsch@fitchratings.com

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