CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has reviewed the GE Business Loan Trusts (GE BLT) as part of a proposed servicing transfer from GE Capital Corporation (GECC) to EverBank. The transfer is scheduled to be completed by Oct. 1, 2012.
Based on its review, Fitch does not believe that the transfer of servicing on the BLT transactions will result in a downgrade on any of the rated transactions. However, Fitch may take rating actions in the event of changes in performance or credit enhancement measures.
As part of the review, EverBank and GECC provided details of acquisition plans for the GE BLT portfolio. The transfer would include the whole business sale of GECC's Business Property Lending, Inc. (BPL) platform including servicing and originations platforms, systems, the entire staff, and servicing rights to nine GE BLT transactions (seven rated by Fitch), and $2.9 billion in outstanding loans. As part of the agreement, GECC will retain rights to excess spread, reserve account releases, letter of credit reimbursement amounts, balance guaranty swaps, and repurchase obligations pursuant to Mortgage Loan Purchase Agreements for the trusts.
Based on discussions with EverBank and BPL, no material changes are expected to be made to the servicing and collection procedures following the completion of the transaction. As such, no material change is anticipated in monthly investor reporting for the outstanding ABS transactions due to the transfer.
The seven BLT transactions rated by Fitch, detailed below, are backed by 1,191 commercial real estate loans to small and midsize businesses. As of Aug. 31, 2012, the current balance on the outstanding Fitch-rated transactions was approximately $2.2 billion. Performance has remained within Fitch's expectations and continues to be monitored as part of Fitch's ongoing ratings surveillance process. As mentioned earlier, changes in performance or credit enhancement measure may warrant possible rating action in the future.
EverBank, a subsidiary of EverBank Financial Corp., services $2.5 billion of commercial loans and leases and a portfolio of 400,000 residential loans totaling approximately $54 billion. EverBank also directly originates commercial and residential mortgage loans, provides equipment leasing and financing, and wealth management services. Fitch does not currently rate EverBank or EverBank Financial Corp.
Fitch's review only addresses the effect of transferring the BLT servicing from GECC to EverBank. It does not address whether the transfer is permitted by the terms of the transaction documents, nor does it address whether it is in the best interests of, or prejudicial to, some or all of the holders of the securities.
Fitch rates the following GE Business Loan Trusts:
--GE Business Loan Trust 2003-1
--GE Business Loan Trust 2003-2
--GE Business Loan Trust 2004-2
--GE Business Loan Trust 2005-1
--GE Business Loan Trust 2005-2
--GE Business Loan Trust 2006-1
--GE Business Loan Trust 2006-2
Additional information is available at 'www.fitchratings.com'.
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Juveria Mozaffar, +1-312-606-2335
Source: Fitch Ratings