S&P: Japan-Based Shinsei Servicing & Consulting STRONG Ranking As A Commercial Loan Special Servicer Affirmed; Outlook Stable
The STRONG ranking primarily reflects our views on:The company's significant track record in handling commercial loans as a special servicer;The fairly high likelihood that it will uphold its established internal control framework; andThe ample servicing experience of its management team and collection staff. The company was established in October 2001 to conduct loan servicing operations as allowed under Japan's Act on Special Measures Concerning Claim Management and Collection Businesses (the Servicer Law). It was licensed by the Ministry of Justice as Japan's 63rd servicer in January 2002 and began operations in the same month. The company changed its name to Shinsei Servicing & Consulting Ltd. in July 2013. Following organizational changes in 2015 and 2016, SSC has focused on the servicing of commercial loans. SSC is one of four companies in the Shinsei Principal Investments group and is an indirectly wholly owned, consolidated subsidiary of Shinsei Bank Ltd.
Our STRONG ranking on SSC as a commercial loan special servicer reflects our analysis and assessment of various factors, including:The company's track record in handling commercial loans as a special servicer;The servicing experience of its management team and staff;The turnover rate of its core servicing and related staff;Its clear, detailed internal policies and procedures and their appropriate revisions and updates;The implementation and results of its internal audits;Its establishment and maintenance of internal controls;Its internal training programs;Its disaster contingency programs, including data backup systems, and its execution of system resumption tests;Its method for preparing collection plans;Its insurance coverage;Its ability to report to investors and other relevant parties; andOperational and financial support from the Shinsei Bank group. S&P Global Ratings bases its servicer evaluations on an objective and comprehensive assessment of a servicer's operational capabilities for servicing various types of receivables and obligatory rights. Based on the assessment, we assign rankings in the following five categories: STRONG, ABOVE AVERAGE, AVERAGE, BELOW AVERAGE, and WEAK.
To be included in, or to remain on, S&P Global Ratings' Select Servicer List, servicers must, in principle, meet the criteria for attaining at least an AVERAGE ranking with a stable outlook and a sufficient financial position.