Fitch Affirms CMLS Financial Ltd.'s Servicer Ratings

Fitch Ratings affirms CMLS Financial Ltd.'s (CMLS) commercial servicer ratings as follows:

--Commercial Primary Servicer rating at 'CPS3';

--Commercial Master Servicer rating at 'CMS3-';

--Commercial Loan Level Special Servicer rating at 'CLLSS3'.

The servicer ratings reflect CMLS's experienced management group, the company's limited internal control environment, the continued development of internal technology, and the financial condition of CMLS Financial. The primary and master servicer ratings reflect Fitch's assessment of CMLS's ability to service commercial real estate loans and the company's less experienced servicing staff relative to other Fitch rated servicers.

The master servicer rating also reflects potential advancing obligations under stressed scenarios relative to the company's liquidity and earnings and loan concentrations. Advancing concerns are mitigated by low delinquency rates, the sale of master servicing of a single borrower transaction, and the presence of back-up advancing agents in Canadian CMBS.

The loan level special servicer rating reflects CMLS's limited special servicing staffing and related capacity constraints, its experienced asset manager and senior managers, as well as the nature of the Canadian commercial mortgage market.

As of June 30, 2014, CMLS was the named master and primary servicer for 68 CMBS loans totaling C$1 billion in three transactions, up from C$247.7 million as of Dec. 31 2012 as a result of the company's recent securitizations. CMLS was also the named primary servicer (reporting to an external master) for four CMBS loans totaling C$29.60 million.

Also as of June 30, 2014, CMLS was named special servicer for 68 loans totaling C$1 billion for three CMBS transactions (with no loans in special servicing), and appointed as special servicer on 1,592 non-CMBS loans totaling C$8.2 billion, of which three loans totaling C$32.6 million were actively specially serviced.

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

Applicable Criteria and Related Research:

--'U.S. Commercial Mortgage Servicer Rating Criteria' Feb. 14, 2014;

--'Rating Criteria for Structured Finance Servicers' Jan. 30, 2014.

Applicable Criteria and Related Research:

U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria -- Effective January 31, 2011 to January 30, 2014

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=600065

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=907214

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