Fitch Ratings has affirmed 15 classes of WFRBS Commercial Mortgage Trust (WFRBS) commercial mortgage pass-through certificates series 2013-C12. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations reflect the transaction's stable performance since issuance. As of the December 2014 distribution date, the pool's aggregate principal balance has been reduced by 1.4% to $1.21 billion from $1.23 billion at issuance. Interest shortfalls are currently affecting class G. Ninety-one percent of the loans reported partial year 2014 financials. Based on the annualized 2014 net operating incomes (NOIs), the pool's overall NOI has increased 11.5% over the pool NOI at issuance. There is a notable single tenant exposure within the transaction. Five of the top 15 loans, representing 18.6% of the pool, are secured by properties 100% leased to a single tenant.
There is one loan in special servicing (0.46%) due to a non-monetary default. However, the loan, which is secured by a 100,000 square foot retail center in the Atlanta MSA, remains current and is expected to be transferred back to the master servicer shortly.
The largest loan in the pool is the Grand Beach Hotel loan (10.3% of the pool), which is secured by a 424-room, 20-story, full-service oceanfront hotel located in Miami Beach, Florida. Amenities at the property include a fitness center, three pools, full service restaurant, meeting facilities, a business center, and valet parking including 560 spaces. As of September 2014, the debt service coverage ratio (DSCR) was reported to be 2.97x compared to 2.13x at issuance.
The next largest loan in the pool is the RHP Portfolio II loan (9.6% of the pool). The loan is collateralized by 18 manufactured housing communities comprising 2,967 home pads with nine properties in Colorado (1,814 pads), six in Wyoming (737 pads), two in Illinois (351 pads), and one in Arizona (65 pads). As of June 2014, the occupancy and DSCR was reported to be 91% and 1.60x respectively, which compares favorably to 86% and 1.47x at issuance.
The third largest loan in the pool is the One South Wacker Drive loan (7.8% of the pool), which is secured by a 40-story, 1.2 million square foot class B office tower located in Chicago, IL. The property includes a 135-car subterranean parking garage and is occupied by a mix of 45 office and retail tenants (including 11 investment-grade tenants occupying 21.2% of net rentable area). Occupancy at the property was reported to be 79% as of September 2014, compared to 83% at issuance. And the DSCR was reported to be 2.61x, compared to 2.62x at issuance.
RATING SENSITIVITY
The Rating Outlook for all classes remains Stable due to stable collateral performance. No rating changes are expected unless there is a material decline in property occupancies or cash flows. Additional information on rating sensitivity is available in the report 'WFRBS Commercial Mortgage Trust 2013-C12' (May 2013), available at 'www.fitchratings.com'.
Fitch affirms the following classes:
--$46.2 million class A-1 at 'AAAsf', Outlook Stable;
--$143 million class A-2 at 'AAAsf', Outlook Stable;
--$165 million class A-3 at 'AAAsf', Outlook Stable;
--$298.2 million class A-4 at 'AAAsf', Outlook Stable;
--$102 million class A-SB at 'AAAsf', Outlook Stable;
--$90 million class A-3FL at 'AAAsf', Outlook Stable;
--$0 class A-3FX at 'AAAsf', Outlook Stable;
--$120.1 million class A-S at 'AAAsf', Outlook Stable;
--$964.4 million class X-A at 'AAAsf', Outlook Stable;
--$126.2 million class X-B at 'A-sf', Outlook Stable;
--$75.4 million class B at 'AA-sf', Outlook Stable;
--$50.8 million class C at 'A-sf', Outlook Stable;
--$41.6 million class D at 'BBB-sf', Outlook Stable;
--$27.7 million class E at 'BBsf', Outlook Stable;
--$16.9 million class F at 'Bsf', Outlook Stable.
Fitch does not rate the classes X-C or G certificates.
A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following reports:
--'WFRBS Commercial Mortgage Trust 2013-C12' (May 2013)
--'WFRBS Commercial Mortgage Trust 2013-C12 - Appendix' (May 2013)
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:
Structured Finance >> CMBS >> Criteria Reports
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=969915
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