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TEXT-S&P affirms Archon Group, Archon Capital Bank ranking
January 8, 2013 / 5:20 PM / 5 years ago

TEXT-S&P affirms Archon Group, Archon Capital Bank ranking

Jan 8 () - OVERVIEW
     -- We have affirmed our ABOVE AVERAGE rankings on Archon Group 
Deutschland/Archon Capital Bank Deutschland, as a special servicer of 
residential and commercial mortgages in Germany.
     -- We have revised the outlook to stable from positive.
    
     Jan 8 - Standard & Poor's Ratings Services has affirmed its ABOVE AVERAGE
rankings on Archon Group Deutschland GmbH (AGD)/Archon Capital Bank Deutschland
GmbH (ACBD), owned by Goldman Sachs & Co., as a special servicer of residential
and commercial mortgages in Germany.

Our rankings on AGD/ACBD reflect our view of the following:
     -- An established servicing platform in Germany with experienced and 
tenured staff.
     -- A robust and experienced human capital management (HCM) department, 
which is also responsible for delivering employee training and development 
plans that are aligned to corporate strategy.
     -- Established audit and risk management control functions underpinned by 
Goldman Sachs' audit department.
     -- An established information technology platform, which is centralized 
for European operations in Paris, and supported by Archon Group (AG) globally 
as well as Goldman Sachs. 
     -- Thorough, tested disaster recovery and business continuity plans. 
     -- Limited recent loan boarding opportunities, which have restricted 
opportunities to test the boarding process.
     -- Formal processes are in place to enable regular review of all loans.
     -- Plans are in place to further integrate operations within Goldman 
Sachs. We believe that this is likely to benefit AG.
 
Our previous report dated Aug. 31, 2011 referenced AGD/ACBD as Archon Group 
Europe. By way of clarification, we have titled today's report under the names 
of the two companies, which make up the servicing operations in Germany.

 
OUTLOOK

The outlook is stable on AGD/ACBD as a special servicer of residential and 
commercial mortgages in Germany.

MANAGEMENT AND ORGANIZATION

Our subrankings on AGD/ACBD for management and organization are STRONG as a 
special servicer of residential and commercial mortgages in Germany.

LOAN ADMINISTRATION

Our subrankings for loan administration on AGD/ACBD are ABOVE AVERAGE as a 
special servicer of residential and commercial mortgages in Germany.

FINANCIAL POSITION

We consider AGD/ACBD's financial position to be Sufficient.

AGD/ACBD are wholly owned subsidiaries of the Goldman Sachs Group Inc. 
(A-/Negative/A-2), the parent holding company of Goldman Sachs & Co. We 
consider that the parent entity has sufficient financial strength to sustain 
the special servicing operation for at least the next 12 to 18 months. 

Additional information about our credit rating on the Goldman Sachs Group can 
be found on the Global Credit Portal, Standard & Poor's Web-based credit 
analysis system.
 
RELATED CRITERIA AND RESEARCH

Related Criteria

     -- Standard & Poor's Revises Criteria Methodology For Servicer Risk 
Assessment, May 28, 2009
     -- Revised Criteria For Including RMBS, CMBS, And ABS Servicers On 
Standard & Poor's Select Servicer List, April 16, 2009
     -- Servicer Evaluation Ranking Criteria: U.S., Sept. 21, 2004
     -- Servicer Evaluations: Servicer Evaluation Ranking Criteria: U.S., 
Sept. 21, 2004
 
Related Research
 
     -- Servicer Evaluation: Archon Group Deutschland GmbH/Archon Capital Bank 
Deutschland GmbH, Jan. 8, 2013
     -- Servicer Evaluation: Archon Group Italia S.r.l./Societa Gestione 
Crediti, Sept. 6, 2012
     -- Servicer Evaluation: Archon Group Europe, Aug. 31, 2011
     -- Structured Finance Sector Report Card: Low Lending Levels Continue To 
Constrain European Servicers' Portfolio Growth, Nov. 23, 2009
     -- Select Servicer List, published monthly
     -- Structured Finance Sector Report Card: European Loan Servicers, 
published half-yearly

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