Japan-Based SMBC Servicer has a significant track record in handling commercial loans as a special servicer.


  • The company's management team and collection staff have ample servicing experience.
  • SMBC Servicer has a significant track record in handling commercial loans as a special servicer.
  • The company has computer systems to support efficiency of the servicing business.
  • The company has established data backup procedures and facilities, including periodic tests executed under its disaster contingency plans.
  • We are affirming our STRONG ranking on SMBC Servicer as a commercial loan special servicer. The outlook on the ranking is stable.

The STRONG ranking primarily reflects our views on:
  • The ample servicing experience of the company's management team and collection staff;
  • The company's significant track record in handling commercial loans as a special servicer;
  • Its computer systems supporting efficiency of the servicing business; and
  • Its established data backup procedures and facilities, including periodic system resumption tests executed under its disaster contingency plans.
SMBC Servicer is a wholly owned subsidiary of Sumitomo Mitsui Banking Corp. 
SMBC Servicer was established through a merger between SMBC Business Servicing 
Co. Ltd. and SMBC Loan Servicer Co. Ltd. in October 2007. SMBC Business 
Servicing was established in March 1999 to conduct servicing operations as 
allowed under Japan's Act on Special Measures Concerning Claim Management and 
Collection Businesses (the Servicer Law) and was licensed by the Ministry of 
Justice as Japan's 10th servicer in June of the same year. SMBC Loan Servicer 
was established in July 1999 and was licensed as Japan's 25th servicer in 
October of the same year. As of March 31, 2017, SMBC Servicer employed 231 
staff--20 were directors and executive officers, and the rest were 211 
non-executive employees. The company's head office is in Tokyo and it has 
branches in Osaka and Kobe.

Today's affirmation reflects our overall evaluation of SMBC Servicer as a 
commercial loan special servicer, based on 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 collection staff;
  • Its development of internal controls;
  • Its detailed internal manual of procedures, and the manual's accessibility to employees;
  • Its maintenance and enhancement of service standards via use of internal training programs;
  • The implementation and results of its internal audits;
  • The quality and capacity of the computer systems that support its day-to-day business operations;
  • Its disaster contingency plans, data backup systems, and system resumption tests;
  • Its method for preparing collection plans;
  • Its cash management methods; and
  • Business and financial support from the parent company.