NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 12 classes of WFRBS Commercial Mortgage Trust 2012-C9 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are due to stable performance of the underlying pool since issuance. As of the September 2013 distribution date, the pool's aggregate principal balance has been reduced by 1.2% to $1.04 billion from $1.05 billion at issuance. Fitch has designated two loans (4.3%) as Fitch Loans of Concern (LOC), and no loans are in special servicing. Full year 2012 financials were available for 56 (87.7%) of the remaining 73 loans in the pool.
The largest Fitch LOC is secured by the Hyatt Regency Milwaukee, a 481-key, full-service, hotel (3.7% of the pool). The hotel is located near the Bradley Center, US Cellular Center and is connected to the Frontier Airlines Center by an enclosed skywalk. As per the year-end 2012 financials, the property's net operating income (NOI) was 27.8% below that of underwritten at issuance. The decrease in NOI was attributed to an increase in expenses primarily associated with the franchise fee. The servicer-reported occupancy and NOI debt service coverage ratio (DSCR) was at 62.3% and 1.22x as of year-end 2012.
The largest loan of the pool, Chesterfield Towne Center (10.6%), is secured by a 1 million square foot (sf) regional mall with an adjacent strip shopping center located in North Chesterfield, VA. The property is anchored by Sears (non-collateral), JCPenney (non-collateral), Macy's and Garden Ridge. The year-end 2012 servicer-reported occupancy and DSCR was at 94.4% and 1.70x, respectively. The property is performing slightly above its underwritten occupancy and DSCR of 93.1% and 1.64x at issuance, respectively.
The second largest loan of the pool, Town Pavilion, is secured by an office tower, three office buildings and 2 parking garages located in Kansas City, MO. The property is one of a handful of class A office assets in downtown and contains 844,456 sf office space. As per the property's rent roll, the second-quarter 2013 occupancy was 87.6%, which was slightly higher than 85.2% at issuance. In addition, the servicer-reported DSCR was 1.89x as of year-end 2012.
The Rating Outlooks for all classes remain stable due to the relatively stable performance of the pool since issuance. Additional information on rating sensitivity is available in the report 'WFRBS Commercial Mortgage Trust 2012-C9' (Jan. 11, 2013), available at www.fitchratings.com.
Fitch affirms the following classes as indicated:
--$73.3 million class A-1 at 'AAAsf'; Outlook Stable;
--$110.4 million class A-2 at 'AAAsf'; Outlook Stable;
--$444.2 million class A-3 at 'AAAsf'; Outlook Stable;
--$96.2 million class A-SB at 'AAAsf'; Outlook Stable;
--$93.4 million class A-S at 'AAAsf'; Outlook Stable;
--$817.5 million* class X-A at 'AAAsf'; Outlook Stable;
--$101.3 million* class X-B at 'A-sf'; Outlook Stable;
--$64.5 million class B at 'AA-sf'; Outlook Stable;
--$36.8 million class C at 'A-sf'; Outlook Stable;
--$42.1 million class D at 'BBB-sf'; Outlook Stable;
--$21.1 million class E at 'BBsf'; Outlook Stable;
--$19.7 million class F at 'Bsf'; Outlook Stable.
*Notional amount and interest-only.
Fitch does not rate the class 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 report:
--' WFRBS Commercial Mortgage Trust 2012-C9' -- Appendix' (Jan. 11, 2013).
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
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria