Oct 1 - Fitch Ratings has reviewed the GE Business Loan Trusts (GE BLT) as
part of a proposed servicing transfer from GE Capital Corporation (GECC)
to EverBank. The transfer is scheduled to be completed by Oct. 1, 2012.
Based on its review, Fitch does not believe that the transfer of servicing on
the BLT transactions will result in a downgrade on any of the rated
transactions. However, Fitch may take rating actions in the event of changes in
performance or credit enhancement measures.
As part of the review, EverBank and GECC provided details of acquisition plans
for the GE BLT portfolio. The transfer would include the whole business sale of
GECC's Business Property Lending, Inc. (BPL) platform including servicing and
originations platforms, systems, the entire staff, and servicing rights to nine
GE BLT transactions (seven rated by Fitch), and $2.9 billion in outstanding
loans. As part of the agreement, GECC will retain rights to excess spread,
reserve account releases, letter of credit reimbursement amounts, balance
guaranty swaps, and repurchase obligations pursuant to Mortgage Loan Purchase
Agreements for the trusts.
Based on discussions with EverBank and BPL, no material changes are expected to
be made to the servicing and collection procedures following the completion of
the transaction. As such, no material change is anticipated in monthly investor
reporting for the outstanding ABS transactions due to the transfer.
The seven BLT transactions rated by Fitch, detailed below, are backed by 1,191
commercial real estate loans to small and midsize businesses. As of Aug. 31,
2012, the current balance on the outstanding Fitch-rated transactions was
approximately $2.2 billion. Performance has remained within Fitch's expectations
and continues to be monitored as part of Fitch's ongoing ratings surveillance
process. As mentioned earlier, changes in performance or credit enhancement
measure may warrant possible rating action in the future.
EverBank, a subsidiary of EverBank Financial Corp., services $2.5 billion of
commercial loans and leases and a portfolio of 400,000 residential loans
totaling approximately $54 billion. EverBank also directly originates commercial
and residential mortgage loans, provides equipment leasing and financing, and
wealth management services. Fitch does not currently rate EverBank or EverBank
Fitch's review only addresses the effect of transferring the BLT servicing from
GECC to EverBank. It does not address whether the transfer is permitted by the
terms of the transaction documents, nor does it address whether it is in the
best interests of, or prejudicial to, some or all of the holders of the
Fitch rates the following GE Business Loan Trusts:
--GE Business Loan Trust 2003-1
--GE Business Loan Trust 2003-2
--GE Business Loan Trust 2004-2
--GE Business Loan Trust 2005-1
--GE Business Loan Trust 2005-2
--GE Business Loan Trust 2006-1
--GE Business Loan Trust 2006-2
Additional information is available at 'www.fitchratings.com'.