OREANDA-NEWS. Fitch Ratings has affirmed the commercial real estate (CRE) servicer ratings of Pacific Life Insurance Company (Pacific Life) as follows:

--Commercial primary servicer rating at 'CPS1';
--Commercial loan level special rating at 'CLLSS2+'.

The primary and loan level special servicer ratings reflect Fitch's assessment of the company's demonstrated long history and ability to effectively service commercial mortgage loans. Fitch also considered Pacific Life's robust internal control environment consisting of supervisory reviews and internal quality assurance program, as well as internal and external audits.

The rating also takes into account the highly tenured and experienced servicing staff with no turnover, the firm's technology infrastructure, as well as its established policies and procedures for loan servicing and default resolution.

Pacific Life Insurance Company (Pacific Life, or the company) has originated and serviced its own CRE loans since its inception in 1868, and for third-party investors and clients since the 1970s. CRE lending operations at the company generate $1 billion-$2 billion per year of new, directly serviced commercial mortgages, including a significant number of construction loans. In recent years, Pacific Life's approach to servicing has been to pursue strategic primary and/or special servicing assignments in conjunction with B-note investments. Recent special servicer appointments include COMM 2014-227P and Houston Galleria Mall Trust 2015-HGLR single-borrower transactions as well as Impact 2014-1, a multi-borrower affordable housing transaction.

As of March 31, 2015, Pacific Life was servicing 659 CRE loans totaling $18.1 billion in outstanding balance. As of the same date, Pacific Life was named special servicer on 366 loans in eight CMBS transactions totaling $2.8 billion, none of which are currently in special servicing. Pacific Life is also designated special servicer for 205 non-securitized commercial mortgage loans, of which, five loans totaling $74.9 million are in default. Pacific Life is managing four foreclosed properties representing $40.4 million in outstanding balance. Non-securitized loans, which represent a majority of Pacific Life's named special servicing portfolio, are balance sheet loans originated by Pacific Life and private client loan portfolios.

The servicer rating is based on the methodology described in Fitch's reports 'U.S. Commercial Mortgage Servicer Rating Criteria,' dated Feb. 14, 2014, and 'Rating Criteria for Structured Finance Servicers' dated Apr. 23, 2015, available on Fitch's web site www.fitchratings.com.