Fitch Affirms WFRBS Commercial Mortgage Trust 2013-C14 (WFRBS 2013-C14) Certificates

CHICAGO--()--Fitch Ratings has affirmed 17 classes of WFRBS Commercial Mortgage Trust 2013-C14 certificates due to stable performance since issuance. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are based on the stable performance of the underlying collateral pool. As of the April distribution, the pool's aggregate principal balance has been paid down by 0.4% to $1.46 billion from $1.47 billion at issuance. Based on the annualized 2013 reported net operating income (NOI) of the 79% of loans the reported, the pool's overall NOI has improved 2.7% since issuance.

There are currently no delinquent loans, specially serviced loans or Fitch Loans of Concern. There are three loans on the servicer watchlist for occupancy decreases since issuance. Fitch will continue to monitor the loans for new developments as the master servicer awaits sponsor updates.

RATINGS SENSITIVITY

The Rating Outlook for all classes remains Stable. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics. Additional information on rating sensitivity is available in the report 'WFRBS Commercial Mortgage Trust 2013-C14' (May 14, 2013), available at 'www.fitchratings.com'.

The largest loan of the pool is secured by RHP Properties Portfolio III (8.8% of the pool), a portfolio of 12 manufactured housing communities consisting of 3,312 home pads located in five different states. The loan is sponsored by a joint venture of RHP properties and Northstar Realty Finance. RHP has an extensive history of managing manufactured housing communities and is the second largest private owner-operator of the asset class with a total portfolio value in excess of a $1 billion. The properties are primarily located in secondary markets. The communities feature a range of amenities that include playgrounds, swimming pools, and club houses. Performance of the portfolio has historically been stable and the occupancy rate increased 100 basis points since issuance to 86%.

The second largest loan is collateralized by two office buildings consisting of 794,101 square feet (sf) and an adjoining parking garage located in Atlanta, GA. The subject is part of a larger development that serves as the Southeast headquarters for AT&T Inc. and is solely leased to the investment grade corporate entity on a triple-net basis. The buildings are owned by Macfarlan Capital Partners and Cole Real Estate Investment which are sophisticated real estate investors with more than 50 million square feet of combined holdings. The subject is optimally located within the Midtown submarket with access to both Interstate 75 and 85 along with direct access to the North Avenue MARTA station. The Midtown submarket continues to experience development growth and is an established office market with the additional corporate headquarters of Equifax, Earthlink, Invesco, and The Coca-Cola Company.

The third largest loan is a retail property, The Plant San Jose, collateralized by 485,895 sf of a larger 623,695 sf power center located in San Jose, CA. The subject was developed in 2008 and is leased primarily to national and regional tenants. The loan is sponsored by Cole Credit Property Trust IV, Inc. The property's performance has been strong since opening and is attributable to the limited competition within the market. The nearest power center is located more than four miles from the subject and features a similar tenant roster. Although the tenant base overlaps with the subject, The Plant has a competitive advantage in site layout and proximity to major roadways.

Fitch affirms the following classes:

--$54.6 million Class A-1 at 'AAAsf'; Outlook Stable;

--$48.2 million Class A-2 at 'AAAsf'; Outlook Stable;

--$55.0 million Class A-3 at 'AAAsf'; Outlook Stable;

--$160.0 million Class A-4 at 'AAAsf'; Outlook Stable;

--$437.7 million Class A-5 at 'AAAsf'; Outlook Stable;

--$55.0 million#, a Class A-3FL at 'AAAsf'; Outlook Stable;

--$0.0a million Class A-3FX 'AAAsf'; Outlook Stable;

--$160.0 million#, a Class A-4FL at 'AAAsf'; Outlook Stable;

--$0.0a million Class A-4FX 'AAAsf'; Outlook Stable;

--$116.2 million Class A-SB at 'AAAsf'; Outlook Stable;

--$108.4b million Class A-S at 'AAAsf'; Outlook Stable;

--$1.1* billion Class X-A at 'AAAsf'; Outlook Stable;

--$102.9* million Class X-B at 'AA-sf'; Outlook Stable;

--$102.9b million Class B at 'AA-sf'; Outlook Stable;

--$53.3b million Class C at 'A-sf'; Outlook Stable;

--$264.5b million Class PEX at 'A-sf'; Outlook Stable;

--$77.2a million Class D at 'BBB-sf'; Outlook Stable;

--$25.7a million Class E at 'BBsf'; Outlook Stable;

--$16.5 million Class F at 'Bsf'; Outlook Stable.

Fitch does not rate class G or the interest-only class X-C.

# Floating rate.

* Notional amount and interest-only.

a Privately placed pursuant to Rule 144A .

b Class A-S, Class B and Class C certificates may be exchanged for Class PEX certificates; and Class PEX certificates may be exchanged for Class A-S, Class B and Class C certificates.

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).

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-C14' (May 14 2013).

--' WFRBS Commercial Mortgage Trust 2013-C14 -- Appendix' (May 14 2013).

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=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=827556

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:
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, New York, +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, New York, +1-212-908-0278
sandro.scenga@fitchratings.com