OREANDA-NEWS. This announcement replaces the version published on 10 June 2016 to correct the Commercial Special Servicer Rating.

Fitch Ratings has affirmed Wells Fargo Bank N. A.'s (Wells Fargo) UK Commercial Primary and Special Servicer Ratings at 'CPS2'and 'CSS3' respectively.

The UK commercial servicer ratings are based on the activities, staff, infrastructure and technology provided by Wells Fargo's operations in the U. S., India and Europe. The ratings are related to the servicing of UK-based loans and assets.

The ratings reflect Wells Fargo's long history of commercial real estate servicing performed by experienced and tenured staff, active involvement in the commercial real estate market, strong information technology infrastructure, thorough policies and procedures, and multi-layered internal controls functions.

The ratings also reflect a less mature UK operation than the U. S. business. A senior asset manager was hired in August 2015, with 12 years commercial loan servicing experience in the U. K., and the U. S. operation continues to support most loan administration, asset management and special servicing duties. The UK loans are serviced using the same technology platform as in the U. S., enabling a seamless servicing process.

Currently, there is no dedicated commercial mortgage special servicing staff in London; however, given the current servicing portfolio size Fitch considers the resourcing to be appropriate. The workout experience of UK loans and assets is also lower than rated peers, although Fitch gives some credit to the real estate knowledge within the wider European commercial real estate teams based in London. If the European special servicing portfolio grows, Fitch believes London-based asset managers will be key to the success of the operation.

The servicer ratings further incorporate the financial strength of Wells Fargo Bank and its commitment to commercial real estate servicing as a core business of the company.

As of end-2015, Wells Fargo was servicing 10 loans in the U. K. and five loans in Germany, totaling approximately GBP1.25bn or US$1.8bn.

The servicer ratings are based on the methodology described in 'Rating Criteria for Structured Finance Servicers', which includes a comparison of similar UK servicers as part of the review process.