TOKYO (Standard & Poor's) June 9, 2006--Standard & Poor's Ratings Services
today affirmed its ABOVE AVERAGE Servicer Evaluation Ranking on ORIX Asset
Management & Loan Services Corp. (OAMLS) as a commercial loan master servicer.
At the same time, the outlook on the ranking was revised to positive from
stable. OAMLS remains on Standard & Poor's Select Servicer List.
The outlook revision mainly reflects improvements in the company's
'Management and Organization', such as its efforts to establish an
organizational structure that further promotes operational efficiency, more
developed employee training programs, and periodic disaster contingency
drills. Before assigning an overall ranking as part of its servicer evaluation
process, Standard & Poor's examines concerns relating to a servicer's
financial position and assesses 'Management and Organization' and 'Loan/Asset
Administration' components on a scale of five.
OAMLS has significantly increased its master servicing volume over the
past 18 months. The company is expected to continue participating in CMBS
transactions by enhancing its ties with the ORIX Group. It is also expected to
aggressively expand its customer base to include non-ORIX group companies.
OAMLS is a 100% subsidiary of ORIX Corp. (ORIX) (A-/Stable/--). OAMLS,
established in April 1999 to conduct servicing operations, has a head office
in Tokyo and branch offices in Osaka, Tachikawa, and Fukuoka. In June 1999,
the company was licensed by Japan's Ministry of Justice as the 11th servicer
in Japan under the Special Measures Law Concerning Credit Management and
Collection Business (Servicer Law). Standard & Poor's has assigned its
servicer evaluation rankings as a 'primary servicer', 'special servicer' and
'master servicer' to OAMLS.
Standard & Poor's revised the outlook on the ranking on OAMLS by
examining and analyzing the factors cited below. Standard & Poor's will
continue to monitor progress in the company's business plan, as well as the
company's reaction to market sentiment and investor expectations for master
servicing business.
-- The company's track record as a master servicer;
-- Its promotion of operational efficiency;
-- The experience in the servicing business of its management and collection
staff;
-- Its detailed internal policies and procedures;
-- Its future business expansion plans;
-- The state of implementation and results of its internal audits;
-- Its internal training system;
-- Its disaster contingency programs, including computer backup systems;
-- The quality and capacity of the computer system that supports its
day-to-day business operations;
-- The track record and capabilities of its sub-servicer management and
supervision.
-- Its experience in servicing securitization transactions;
-- Its capacity to receive assets from non-ORIX group companies;
-- Its ability to report to relevant parties; and
-- Its subcontracting to third parties and its subcontractor management
system.
Standard & Poor's servicer evaluations are based on an objective and
comprehensive assessment of a servicer's operational capabilities for
servicing various types of receivables and obligatory rights. The assessment
is described in five rankings: STRONG, ABOVE AVERAGE, AVERAGE, BELOW AVERAGE,
and WEAK.
A Japanese-language version of this media release is available on
Standard & Poor's Research Online at www.researchonline.jp, or via CreditWire
Japan on Bloomberg Professional at SPCJ <GO>.
