Fitch Upgrades Wachovia 2003-C4

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has upgraded three classes of Wachovia Bank Commercial Mortgage Trust's (WBCMT) commercial mortgage pass-through certificates, series 2003-C4. A full list of rating actions follows at the end of this release.

The rating upgrades are a result of increased credit enhancement due to pay down, minimal Fitch expected losses, and defeasance. As of the June 2011 distribution date, the pool's certificate balance has paid down 36.9% to $562.6 million from $891.8 million at issuance. Nine loans (9.25%) are fully defeased. Interest shortfalls totaling $164,081 are currently affecting class P.

Of the original 140 loans, 114 remain outstanding. Fitch has identified 23 loans (13.6%) as Fitch Loans of Concern, which includes one specially-serviced loan (.62%). The special servicing loan did not pay off at maturity and is not performing.

The largest contributor to modeled losses is a 130 unit apartment complex (.56%) built in 1980, located in Macon, GA. The servicer reported debt service coverage ratio (DSCR) as of year end (YE) 2010 was .47 times (x) and the occupancy was 74%, which dropped from 81% in YE 2009.

The second largest contributor to modeled losses is a 187,523 square foot (sf) anchored retail center (3.94%) located in Flowood, MS, in the Jackson metropolitan statistical area (MSA). The servicer reported occupancy as of December 2010 was 98%.

Fitch has upgraded and revised Loss Severity (LS) ratings as indicated:

--$12.3 million class G to 'AAA/LS4' from 'AA/LS5'; Outlook Stable;

--$12.3 million class H to 'AA/LS4' from 'A+/LS5'; Outlook Stable;

--$20.1 million class J at 'A/LS3' from 'A-/LS4'; Outlook Stable.

Fitch has affirmed the following classes and revised LS ratings as indicated:

--$181.2 million class A-1A at 'AAA/LS1'; Outlook Stable;

--$199.5 million class A-2 at 'AAA/LS1'; Outlook Stable;

--$34.6 million class B at 'AAA/LS3'; LS to 'LS3' from 'LS1'; Outlook Stable;

--$11.1 million class C at 'AAA/LS4'; LS to 'LS4' from 'LS5'; Outlook Stable;

--$22.3 million class D at 'AAA/LS3'; LS to 'LS3' from 'LS4'; Outlook Stable;

--$12.3 million class E at 'AAA/LS4'; LS to 'LS4' from 'LS5'; Outlook Stable;

--$12.3 million class F at 'AAA/LS4'; LS to 'LS4' from 'LS5'; Outlook Stable;

--$8.9 million class K at 'BBB+/LS4'; LS to 'LS4' from 'LS5'; Outlook Stable;

--$6.7 million class L at 'BBB/LS5'; Outlook Stable;

--$6.7 million class M at 'BB+/LS5'; Outlook Stable;

--$1.1 million class N at 'BB/LS5'; Outlook Stable;

--$4.5 million class O at 'BB-/LS5'; Outlook Stable.

Fitch does not rate the $17 million class P certificates and class A-1 and X-P has paid in full.

Fitch has withdrawn the rating on the interest-only class X-C. (For additional information on the withdrawal of the rating on the interest-only class, see 'Fitch Revises Practice for Rating IO & Pre-Payment Related Structured Finance Securities', dated June 23, 2010.)

Additional information on Fitch's amended criteria for analyzing U.S. fixed-rate CMBS transactions is provided in the Nov. 17, 2010 report 'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions', 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. 13, 2010);

--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Nov. 17, 2010).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326

Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=574208

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