TEXT-S&P; affirms Midland servicer rankings

Oct 22 (Reuters) - Standard & Poor's Ratings Services today affirmed its STRONG commercial mortgage primary, master, and special servicer rankings for Midland Loan Services (Midland), a division of PNC Bank N.A., a wholly owned subsidiary of The PNC Financial Services Group Inc. The outlook is stable for all three rankings. The financial position is Sufficient.

The affirmed rankings reflect, in our opinion, the company's very experienced management and staff, well written manuals, internal controls, audit regimes, and comprehensive and integrated servicing technology. Our rankings are based on the strong internal operational controls and integrated technologies Midland benefits from, as well as the company's very stable staff and consistently low turnover rates.

KEY RANKING FACTORS

Strengths:

-- Solid breadth and depth of manager and staff experience;

-- Strong technology platform; and

-- Comprehensive quality control and audit environment.

Weakness:

-- Increasing inventory-time of REO properties.

-- Borrower consent response times.

Key Changes Since Last Review

-- Midland has increased primary servicing and decreased special servicing staff levels in line with volume changes.

-- The servicer has enhanced its servicing platform to improve its asset management special servicing module.

-- Midland increased fee-for-service and Real Estate Solutions asset management business line activities for third parties and governmental clients.

As of June 2012, the company's servicing portfolio included approximately 31,000 loans with an unpaid principal balance of $254 billion and its special servicing portfolio included 335 loans and real estate owned assets with a balance of $3.2 billion.

OUTLOOK

The outlook for each ranking is stable. Given the company's track record of managing complex servicing structures, a sound technology environment, servicing efficiencies, and ongoing procedural diligence, we expect the company to remain a highly effective and proactive servicer for all of the portfolios it services.