OREANDA-NEWS. Fitch Ratings assigns MCAP Financial Corporation (MFC) commercial servicer ratings as follows:

--Commercial Primary Servicer rating 'CPS3+';
--Commercial Master Servicer rating 'CMS3';
--Commercial Loan Level Special Servicer rating 'CLLSS3'.

MFC houses the commercial mortgage and construction business activities, including originations and servicing, of MCAP Commercial LP (MCAP), one of Canada's largest independent mortgage financing companies. Headquartered in Toronto and founded in 1985 (including predecessor companies), the MCAP group of companies originate, trade, securitize and service single-family residential, construction and commercial mortgages on behalf of over 35 institutional investors.

Otera Capital, an indirect subsidiary of The Caisse de depot et placement du Quebec, maintains a majority ownership interest in MCAP. MCAP is predominately an originator and servicer of single family residential mortgages, consistent with other Fitch rated Canadian commercial mortgage servicers. The majority of commercial loans are originated through the Canada Mortgage and Housing Corporation's insured loan program on multifamily properties, accounting for 92% of the servicing portfolio.

The primary and master servicer ratings reflect MFC's experienced commercial mortgage management team and servicing staff, the company's internal control environment, disaster recovery capabilities, and the financial condition of MCAP. The ratings also reflect Fitch's assessment of MFC's experience primary servicing CMBS loans, having primary serviced CMBS transactions since 2000. The company has not historically been named master servicer or special servicer for any CMBS loans; in December 2014, MFC securitized its first CMBS transaction, MCAP 2014-1, and serves as the primary, master and special servicer.

The master servicer rating also reflects MFC's lack of experience overseeing external subservicers and Fitch's financial assessment of MCAP relative to potential advancing obligations for CMBS transactions under stressed scenarios. Advancing concerns are mitigated by the company's available liquidity and historically low Canadian delinquency rates. The presence of highly rated back-up advancing agents in Canadian CMBS transactions further mitigates potential advancing risks.

Fitch's loan level special servicer rating reflects MFC's experienced asset management team, yet limited special servicing capacity with two asset managers, lack of a centralized default asset management system, and the nature of the Canadian commercial mortgage market. MFC employs five underwriting staff, who also have special servicing experience, which can be used as a resource and asset management has access to the broader MFC platform.

As of Dec. 31, 2014, MFC was the named master and primary servicer for 32 CMBS loans totaling \$224 million. MFC was also the named primary servicer (reporting to an external master) for specific loans in two transactions, totaling eight CMBS loans totaling \$47.2 million. Also as of Dec. 31, 2014, MFC was named special servicer for 32 CMBS loans totaling \$224 million for one CMBS transaction and 395 non-CMBS loans totaling \$2 billion; there were no loans in special servicing.