CHICAGO - (Business Wire) The Chapter 11 bankruptcy of Capmark Financial Group Inc. (Capmark), along with the potential subsequent sale and servicing transfer, will not adversely impact ratings on franchise loan asset-backed securities (ABS) serviced by Capmark, according to Fitch Ratings: Capmark Finance Inc. is currently the servicer on several Fitch-rated franchise loan asset-backed securities (ABS) and is expected to be sold to Berkadia Commercial Mortgage LLC (Berkadia).
On Oct. 26, Fitch Ratings downgraded Capmark's Issuer Default Rating (IDR) to 'D' from 'C' in response to the company's filing of a voluntary petition seeking relief under Chapter 11 of the U.S. Bankruptcy Code.
Capmark-serviced franchise loan ABS rated by Fitch are as follows:
--Atherton Franchise Loan Funding, series 1997-A;
--Atherton Franchise Loan Funding, series 1998-A;
--Atherton Franchise Loan Funding, series 1999-A;
--EMAC Owner Trust, series 1998-1;
--EMAC Owner Trust, series 1999-1;
--EMAC Owner Trust, series 2000-1;
--FMAC Loan Receivables Trust, series 1996-B.;
--FMAC Loan Receivables Trust, series 1997-A;
--FMAC Loan Receivables Trust, series 1997-B;
--FMAC Loan Receivables Trust, series 1997-C;
--FMAC Loan Receivables Trust, series 1998-A;
--FMAC Loan Receivables Trust, series 1998-B;
--FMAC Loan Receivables Trust, series 1998-C;
--FMAC Loan Receivables Trust, series 1998-D.
On Sept. 2, 2009 Capmark entered into a put option agreement to sell its servicing and origination operations to Berkadia, a partnership between Berkshire Hathaway Inc. (long-term IDR rated 'AA+' with a Negative Outlook by Fitch) and Leucadia National Corporation (long-term IDR rated 'BB+' with a Negative Outlook).
Currently, Capmark Financial Group is rated 'D' by Fitch. The acquisition will bring financial stability to the servicing platform. In addition, Berkadia will be capitalized with in excess of $1 billion in available cash by Berkshire Hathaway. Berkadia has indicated to Fitch that it expects to retain substantially all of Capmark's servicing management and staff.
Additional information is available at www.fitchratings.com.
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Fitch Ratings, Chicago
Bradley Sohl, +1-312-368-3127
Peter Manofsky, +1-312-368-2068
or
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com
