Servicer Evaluation

In the intricate world of structured finance, the role of servicers is paramount, directly influencing
the creditworthiness of a deal or bond issuance. CSPI Ratings recognizes and emphasizes the critical nature of servicers in ensuring
the success and integrity of structured finance transactions.

Key Contributions of Servicers to Creditworthiness

Operational Efficiency and Risk Management

CSPI Ratings' Evaluation: Our Servicer Evaluation meticulously assesses a servicer's operational efficiency,
evaluating its ability to seamlessly manage the complexities inherent in structured finance deals.
A robust operational framework directly contributes to minimizing risks associated with these transactions.

Timely and Accurate Payments

CSPI Ratings' Insight: Servicers play a pivotal role in ensuring timely and accurate payments to investors.
Our evaluation delves into the historical performance of servicers, providing insights into their track record
in meeting payment obligations promptly.
This reliability directly impacts the creditworthiness of the structured finance deal.

Adherence to Industry Best Practices

CSPI Ratings' Expertise: Structured finance deals demand a high level of expertise and adherence to industry best practices.
Our Servicer Evaluation scrutinizes the servicer's capabilities in aligning with these practices,
contributing to the overall creditworthiness of the deal.

Technology and Internal Controls

CSPI Ratings' Assessment: In the digital era, technology and internal controls are instrumental
in ensuring the smooth operation of structured finance transactions.
Our evaluation thoroughly examines the servicer's technological capabilities and internal control mechanisms,
essential components for maintaining creditworthiness.

Experience and Expertise in Structured Finance

CSPI Ratings' Specialized Insight: The nuanced nature of structured finance requires servicers
with specific experience and expertise.
CSPI Ratings' Servicer Evaluation for structured finance precisely considers these factors,
providing a nuanced understanding of how a servicer's capabilities contribute to the creditworthiness of a deal.

Forward-Looking Perspectives

CSPI Ratings' Outlook: Our Servicer Evaluation not only looks into historical performance
but also provides forward-looking outlooks.
This forward-thinking approach enables investors to gauge the potential impact on creditworthiness,
considering the evolving landscape of structured finance.

For Business Enquiries

For more information or to discuss your specific needs, please contact us at commercial@cspi-ratings.com.

One of our dedicated representatives will promptly get in touch with you to explore how CSPI Ratings can assist you.

Exhibit: Servicer Evaluation Rating Levels

Servicer Evaluation Rating: Description

EXCEPTIONAL: Servicers exhibit the highest servicing capacity, quality, and efficiency. These servicers may be characterized as companies that have a long-term stable servicing operating history, a proven track record of superior management, demonstrated expertise incorporating industry best practices, superior financial resources, advanced information technology, and excellent internal controls, policies, and procedures.

GOOD: Servicers exhibit very high servicing capacity, quality, and efficiency. These servicers may be characterized as companies that have a stable servicing operating history, a proven track record of strong management, demonstrated expertise incorporating sound industry practices, strong financial resources, well-established information technology, and strong internal controls, policies, and procedures.

SATISFACTORY: Servicers exhibit proficient servicing capacity, quality, and efficiency. These servicers may be characterized as companies that have an acceptable servicing operating history, a proven track record of proficient management, demonstrated expertise in line with industry practices, adequate financial resources, sufficient information technology, and adequate internal controls, policies, and procedures.

WEAK: Servicers exhibit a lack of servicing capacity, quality, and efficiency. These services may demonstrate some of the following characteristics: an unfavorable servicing operating history, a weak management, limited experience, weak financial resources, deficient information technology, and limited internal controls, policies, and procedures.

POOR: Servicers exhibit limited or no servicing capacity, quality, and efficiency. These services may demonstrate some of the following characteristics: a poor servicing operating history, significant weaknesses in management, very limited or no experience, insufficient financial resources, significant deficiencies in information technology systems, and very limited or no internal controls, policies, and procedures.

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