DBRS Confirms A10 Capital, LLC’s Primary and Special Servicing Evaluations of Adequate

DBRS has today confirmed A10 Capital, LLC’s (A10 or the Company) Primary Commercial Mortgage Servicing and Special Commercial Mortgage Servicing evaluations of Adequate.

A10, founded in June 2007, is a privately owned specialty finance company headquartered in Boise, Idaho. The Company’s core business is originating and servicing small to middle market commercial mortgage loans on a nationwide basis. The Company is backed by an affiliate of H.I.G. Capital, a global private equity firm with over $10 billion of capital under management.

A10’s greatest strength is its experienced management and staff and their ability to perform hands-on asset management. Additionally, the Company employs a strong credit committee process throughout the life of a loan from loan origination through post-closing. Due to its relatively small size, one of A10’s greatest challenges remains its key employee risk. In 2012, the Company gained commercial mortgage-backed securities (CMBS) investor reporting and servicing experience through the servicing of its securitization. In the same year, A10 strengthened its risk rating program and implemented an internal audit program.

As of February 28, 2013, A10’s servicing portfolio consisted of 47 loans with current outstanding loan commitments of approximately $209 million.

The servicing evaluation reflects a comprehensive review of the A10 organizational structure, the management team, asset administration, loss management, technology, staffing and training, procedures and controls, and financial strength.

Notes:
All figures are in U.S. dollars unless otherwise noted

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodology is Commercial Mortgage Servicer Evaluations, which can be found on our website under Methodologies.