Fitch Ratings Upgrades Two Classes of WB 2003-C4

NEW YORK--()--Fitch Ratings upgrades two classes of Wachovia Bank Commercial Mortgage Trust, Series 2003-C4 (WB 2003-C4) commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The upgrades reflect continued loan paydown and increased credit enhancement as well as stable collateral performance since the last rating action . Fitch modeled losses of 18.46% of the remaining pool; expected losses as a percentage of the original pool balance are at 1.28%, including losses already incurred to date (0.86%). The remaining pool composition consists of 13 loans: nine fully amortizing loans, two 15-year term loans, and two delinquent and specially serviced 10-year term loans. Fitch has designated eight loans (63.5%) as Fitch Loans of Concern of which two (23.3%) are the specially serviced loans.

RATINGS SENSITIVITY

The Stable Rating Outlooks on classes N and O are due to high credit enhancement and continued expected paydown of the pool. Further upgrades are not warranted due to the significant concentration of the remaining pool as well as the high percentage of Fitch Loans of Concern.

As of the February 2014 distribution date, the pool's aggregate principal balance has been reduced by approximately 97.75% to $20.1 million from $891.8 billion at issuance. Interest shortfalls total $0.34 million and affect class P. There is one defeased loan (15.7%) in the pool.

The largest contributor to modeled losses is the Huntington Woods MHP loan (8.62% of the pool), which is secured by a 123-pad manufacturing housing community. The loan transferred to the special servicer in April 2013 for maturity default. The property's occupancy has been trending down over the past few years and is currently at 83% versus 91% at issuance. A receiver was appointed in August 2013 and commenced foreclosure proceedings.

The second-largest contributor is the real estate owned (REO), Highland Park Apartments (14.67% of the pool), a 116-unit multifamily property located in Macon, GA. The property is located along Interstate 75, 75 miles southeast of Atlanta, GA and is in close proximity to Robbins Air Force base. Occupancy was 72% in 2013.

The third-largest contributor to modeled losses, Summit Place Townhomes (6.35% of the pool), is a 48-unit multifamily community located in Biloxi, MS. The property was recently renamed Providence Pointe II and shares office, laundry, and maintenance facilities with its adjacent property. The property suffers from low economic growth prospects and two competing properties within a mile radius. The property manager continues to address deferred maintenance issues on-site while aggressively marketing the community in an effort to raise occupancy from a low of 73%.

Fitch upgrades the following classes as indicated:

--$1.1 million class N to 'Asf' from 'B-sf', Outlook to Stable from Negative;

--$4.5 million class O to 'BBsf' from 'CCCsf', assigns Stable Outlook.

Class A-1, A-1A, A-2, B, C, D, E, F, G, H, J, K, L, M and the interest-only class X-P have repaid in full. Fitch does not rate $17 million class P. Class X-C was previously withdrawn.

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. 11, 2013).

Applicable Criteria and Related Research:

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=822833

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Contacts

Fitch Ratings
Primary Analyst
Jay Bullie, +1-312-368-2079
Associate Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
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
Jay Bullie, +1-312-368-2079
Associate Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com