DBRS Upgrades A10’s Primary Servicer Evaluation to Good, Confirms Special Servicer Evaluation of Adequate

DBRS, Inc. (DBRS) has today upgraded A10 Capital, LLC’s (A10 or the Company) Primary Mortgage Servicing to Good from Adequate. Additionally, DBRS has confirmed A10’s Special Mortgage Servicing evaluation 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 $15 billion of capital under management.

A10’s greatest strength is its experienced management and staff and their ability to perform hands-on asset management, including a comprehensive and objective asset level risk rating program. Through its securitizations, over the past three years, the Company has developed investor reporting and surveillance expertise. A10 continues to employ a strong credit committee process throughout the life of a loan from loan origination through post-closing. Although A10 proactively hires staff to keep up with its growing portfolio, the Company remains relatively small. As a result, one of A10’s greatest challenges remains its key employee risk.

As of November 30, 2014, A10’s servicing portfolio consisted of 77 loans secured by 107 properties with a current outstanding balance of approximately $514 million and total loan commitments of approximately $610 million.

The servicer 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

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