OREANDA-NEWS. Fitch Ratings has affirmed Stater Nederland B. V.'s (Stater) Dutch Residential Mortgage Primary Servicer Rating at 'RPS1-'

The rating reflects the stable senior management team, with a high level of industry experience compared with peers. Fitch previously commented on the significant turnover at this level. The senior management team has been stable since 2013 and in Fitch's view this provides Stater with clear direction to meet the business objectives of continued improvement and business growth.

Stater continues to strengthen its already robust risk framework, which is reflected in the affirmation. Improvements include appointing a full-time information security officer to reinforce the organisation's security, the introduction of risk audit meetings with clients and obtaining ISO 27001 certification - with no audit findings.

Since the last review, Stater has released a new training and development portal for employees, along with a new selection of training topics. Stater uses a nine grid tool to identify top talent and rising stars within its business. The introduction of the Stater leadership programme since the last review enables the servicer to develop the identified high potential individuals to progress within the business. In Fitch's view, this has improved Stater's succession planning.

Despite a stable training budget the average number of recorded training hours per employee has fallen to 40 hours at end - December 2015 from 55 hours at end - June 2014. This is a significant reduction and is lower than similar peers. Fitch has been provided with evidence of additional training, which has not been included in the reported figure this year, due to an issue with the new portal. Based on the information received, the agency's overall assessment is that there has not been a significant reduction in training activity.

Annualised staff turnover has reduced year-on-year. However, at 24% this remains high compared with rated peers. Fitch notes that this figure includes contract staff, hired to complete short-term client projects and interim employees while permanent members of staff are being recruited.

Fitch notes that call answer times, abandonment rates and hold times have all improved during 2015 despite significant increase in call volumes. In Fitch's view, this demonstrates Stater's ability to scale up with minimal impact on service.

Stater continues to employ strong technology that facilitates a smooth servicing operation. Stater's primary systems, iSHS and Estate, are updated on a bi-monthly basis. Stater has introduced new test and deployment systems which largely automate these activities and provide greater control. This has reduced the number of release-related incidents and the average lead time on system developments, which provides Stater with a more agile and robust system.

The affirmation takes into consideration Stater's stable financial condition. The servicer remains profitable in its own right, with audited year-end financial statements showing a positive profit trend between 2012 and 2014. The ratings benefit from the ongoing direct support from its parent company, ABN AMRO (A+/Stable).

Fitch used its global servicer rating criteria to analyse the servicer's operations and financial condition, including a comparison against similar Dutch servicers as part of the review process. The analysis is based on information provided to Fitch by Stater.

As of 31 December 2015, Stater's primary residential servicing portfolio totalled EUR224bn (June 2014: EUR229bn), consisting of 1,276,556 loans (1,311,532 loans).