Rating

Fitch RSS2 + / CSS2 + (June 2017)

Fitch has confirmed the Company’s rating“RSS2+” e “CSS2+” as special servicer of Italian residential and commercial mortgage.

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In particular Fitch recognizes to the Company:

  • Improved Corporate Stability: The servicer has successfully completed its 2013-2016 corporate plan, resulting in diversified revenue streams and a reduced cost base. This is reflected in PRECS' financial trend, which shows a continued improvement over the past three years.
  • Continued Focus on Staff Development: The corporate plan included a review of the training and development framework, which is now complete. The training plans now in place demonstrate a good mixture of functional, technical and soft skills courses.
  • Effective Recovery Activity: PRECS continues to demonstrate the effective use of a variety of judicial and out-of-court work-out options. Legal timelines remain in line with the average seen across highly rated peers. PRECS demonstrates a good level of third-party oversight through the review of qualitative and quantitative measures, in line with peers.
  • Enhanced Governance: PRECS operates a three-line of defence risk management framework, which is in line with industry standards and includes significant quality control checks on the first-line activities. Structured IA are complemented with an automated continuous monitoring tool for cash management activities, which provides an additional layer of control around a high risk servicing activity.
  • Robust Technology Systems: PRECS's technology infrastructure is robust. The servicing platform provides flexible reporting capabilities, an effective diary management system, and system-driven controls of authority processes and loan-level activities. Appropriate system support and development resources are in place at both servicer and group level, and there are robust security protocols.

 

Standard & Poor’s, rating ABOVE AVERAGE (February 2017):

Standard & Poor's confirms the rating ABOVE AVERAGE as special servicer of residential and commercial mortgages and, at the same time, we have affirmed the rating ABOVE AVERAGE as master servicer of residential mortgages, commercial mortgages as well as unsecured loans in Italy.

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In particular, the rating agency appreciated, with regard to PRECS

  1. The growth of business development team and its capacity to attract new business. PRECS  was appointed as servicer of the first deal sponsored by the Italian government guarantee (GACS) and is currently involved in other GACS transactions.
  2. In addition, PRECS signed a number of other mandates, including a servicing agreement to manage the first multiseller portfolio of nonperforming loans (NPLs) originated by a number of Italian banks.
  3. The management team’s extensive experience in the secure NPL market and the strengthening of organization through recruiting senior-level resources with relevant backgrounds. Moreover in 2015 and 2016, PCS placed a great emphasis on training, focusing on leadership development and regulatory training, respectively. In addition, the company plans to expand the number of training courses provided in 2017 while creating a corporate academy.
  4. Its IT System continuously updates.
  5. The reinforcement of its master servicing operations.

 S&P Global Ratings confirms "stable" outlook on the rating anticipation of Prelios Credit Servicing as master and special servicer.

   

Fitch RSS2 + / CSS2 + (June 2016)

Upgraded the Fitch rating of Prelios Credit Servicing (PRECS) passing by "RSS2" and "CSS2" to "RSS2 +" and "CSS2 +" as a special servicer of italian residential and commercial mortgage.

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The upgrade reflects:

  • the stabilization of the senior management team: following the restructuring of 2013, the Company improved its operating structure and focused on business development, as demonstrated by the acquisition of important new mandates;
  • the increase in assets under management: during 2015 the Company acquired six new mandates of NPL portfolios. PRECS also carries out activities of Master Servicer and Due Diligence Advisor;
  • the improvement of financial results: losses have been reduced significantly over the past three years, and this improvement is due to a constant cost control and increased servicing mandates;
  • the improvement of internal controls: at present, the Risk Management Department reports directly to the company's Board of Directors and is completely independent from the other functions;
  • increased training and development: in the course of 2015 the company increased the number of hours and the variety of training courses offered to its employees.

    

Standard & Poor’s, rating ABOVE AVERAGE (August 2015) as residential and retail mortgage loans servicer.

The rating of the company Prelios Credit Servicing (Precs) is based on the following aspects:

  • Precs has a stable management team, appointed in 2013;
  • Precs has a reliable internal controls system based on a three-lines-of-defense model
  • Precs' core servicing system, Phoenix, has been used for many years and has been upgraded many times
  • Special servicing operations are well established, and Precs achieved its 2014 collection targets
  • Precs monitors seven well-established subservicers through a periodic review of key performance indicators and other controls.
Last update: 02/02/2018 - 13:00