Fitch Upgrades 2 Classes of WAMU 2005-C1

NEW YORK--()--Fitch Ratings has upgraded two classes and affirmed eight classes of Washington Mutual Asset Securities Corporation (WAMU) commercial mortgage pass-through certificates, series 2005-C1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Fitch modeled losses of 4.2% of the remaining pool; expected losses on the original pool balance total 0.4%, including $1.2 million (0.2% of the original pool balance) in realized losses to date. Fitch has designated five loans (7.3%) as Fitch Loans of Concern. There are currently no specially serviced loans in the transaction.

As of the July 2013 distribution date, the pool's aggregate principal balance has been reduced by 94.8% to $33.8 million from $649.5 million at issuance. No loans are defeased. Interest shortfalls are currently affecting classes L through N.

RATING SENSITIVITY

Rating Outlooks on classes D through G remain Stable and classes H and J are revised to Stable from Negative due to increasing credit enhancement and continued paydown. Although the credit enhancement remains high, future upgrades are limited due to upcoming maturities, small balance nature of the loans and adverse selection.

The largest loan of concern (2.8%) is secured by an office property consisting of 23,017 square feet (sf) located in Cameron Park, CA. The property is 86% occupied as of March 2013 with average asking rent of $15.64 per square foot (psf). The largest tenants are Rapid Health Walk In Clinic (22%), lease expiration March 2014; Church of the Foothills (13%), lease expiration July 2014, and Choices Transitional Services (12%), lease expiration March 2014. The property has upcoming rollover of 9% in 2013 and 50% in 2014. Per REIS as of the second quarter of 2013, the Sacramento metro office market vacancy rate is 21.4% with average asking rents of $23.70 psf. The El Dorado County office submarket vacancy rate is 20.7% with average asking rents of $19.79 psf.

Fitch upgrades the following classes as indicated:

--$4.9 million class F to 'AAAsf' from 'AAsf', Outlook Stable ;
--$5.7 million class G to 'AAsf' from at 'Asf', Outlook Stable.

Fitch affirms the following classes and revises Rating Outlooks as indicated:

--$26,676 class D at 'AAAsf', Outlook Stable;
--$5.7 million class E at 'AAAsf', Outlook Stable;
--$8.1 million class H at 'BBBsf', Outlook to Stable from Negative;
--$3.3 million class J at 'BBsf', Outlook to Stable from Negative;
--$2.4 million class K at 'CCCsf', RE 100%;
--$2.4 million class L at 'Csf', RE 0%;
--$812,000 class M at 'Csf', RE 0%;
--$460,308 class N at 'Dsf', RE 0%.

The class A-1, A-2, A-J, B and C certificates have paid in full. Fitch previously withdrew the rating on the interest-only class X certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 18, 2012 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' (May 24, 2013);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012).

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969

Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=798483
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst:
Lisa Cook, +1-212-908-0665
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst:
Lisa Cook, +1-212-908-0665
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com