Fitch Places ORIX Special Servicer Ratings on Rating Watch Negative

Fitch Ratings-New York-: Fitch Ratings places ORIX Capital Markets (ORIX) special servicer rating on Rating Watch Negative due to strategies it employs to work out troubled loans. In Fitch's opinion, ORIX's special servicing strategies are more consistent with the practices of a Fitch rating of 'CSS2' or 'CSS3' than their current Fitch 'CSS1' rating.

'ORIX often pursues resolution of perceived errors or loopholes in loan or deal documents by initiating aggressive litigation,' said Stephanie Petosa, Senior Director, Fitch Ratings. 'This strategy presents a higher risk to the financial interest of the certificate holders.'

Fitch servicer ratings take into account not only operational competency, but the methods and strategies servicers employ when conducting their business. While Fitch views ORIX to be an overall capable special servicer, the litigation strategies the company is employing on certain assets present high risks to the financial interest of the trusts. While the legal pursuit of claims could yield superior returns, the strategy presents a risk of producing very significant losses. Therefore, the ORIX special servicer rating of 'CSS1' is placed on Rating Watch Negative.

Contact: Stephanie Petosa +1-212-908-0720 or Susan Merrick +1-212-908-0725, New York.