TEXT - S&P affirms KeyBank Real Estate Capital

Thu Jan 3, 2013 9:51am EST

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(The following statement was released by the rating agency) OVERVIEW

-- We affirmed our STRONG overall rankings on KeyBank Real Estate Capital (KBREC) as a commercial loan special servicer, commercial loan primary servicer, and commercial loan master servicer. The outlook is stable.

-- KBREC has been a commercial real estate servicer for a number of years and have been heavily involved in securitization. NEW YORK (Standard & Poor's) Jan. 3, 2013--Standard & Poor's Ratings Services today affirmed its STRONG rankings on KeyBank Real Estate Capital (KBREC) as a commercial loan special, primary, and master servicer. The outlook for the rankings is stable. We based our rankings on our favorable assessment of KBREC's management and organization, which includes a highly experienced staff, an effective organizational structure, and a robust quality control and audit framework. KEY RANKING FACTORS Strengths:

-- Seasoned and experienced management;

-- Strong audit, control, and compliance environment; and

-- Effectively technology systems and applications. Weakness:

-- High employee turnover rate. KBREC is a business unit of KeyBank USA N.A. (KeyBank), a wholly owned subsidiary of Cleveland, Ohio-based KeyCorp. The company's servicing and special servicing operations are based in Kansas City, Mo., through its loan servicing and asset management division (LSAM). KBREC is a full-service capital provider and mortgage loan servicer. The units' specialized groups include agency, CMBS, life companies, pension funds, commercial mortgage servicing, health care real estate, real estate investor services, and REITs and funds. As of June 30, 2012, the company actively managed a special servicing portfolio of 105 loans with totaling $316 million. As of same date, it was the named special servicer for 26 CMBS transactions. OUTLOOK The outlook for the commercial mortgage special servicer, primary servicer, and master servicer rankings is stable. KBREC maintains the staffing, processes, and technology required to administer its portfolio in accordance with generally accepted servicing practices. The company has an experienced management team and reasonable growth plans, which should enable it to achieve its goals and serve its customers. (Caryn Trokie, New York Ratings Unit)

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