Fitch Affirms WFRBS 2012-C7 Commercial Mortgage Pass-Through Certificates

NEW YORK--()--Fitch Ratings has affirmed 12 classes of Wells Fargo Bank, N.A. WFRBS 2012-C7 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Affirmations are due to stable pool performance since issuance. As of the April 2014 distribution date, the pool's aggregate principal balance has been reduced by 2.1% to $1.081 billion from $1.104 billion at issuance. The servicer has placed three loans (0.8% of the pool) on the watchlist. Additionally, there is one specially serviced loan (1.6%).

The specially serviced asset is the Bear Creek Meadows Phase I loan (1.6%), a three-property portfolio located in Petoskey, MI. Two of the properties in the portfolio are multifamily housing and the remaining is a retail center. The loan transferred to the special servicer in February 2014 after a payment default despite a year-end net operating income debt service coverage ratio (DSCR) of 1.83x. The lender is actively working to resolve the loan. The property was 98.8% occupied as of year-end 2013.

The largest loan in the pool is Northridge Fashion Center (14.2%), which is collateralized by 643,564 square feet (sf) of a 1.52 million sf regional mall located in Northridge, CA. The property is anchored by JC Penney, Macy's, Macy's Men's & Home, and Sears. The performance of the loan remains strong with occupancy of 92.3% and DSCR of 1.66x as of September 2013.

The second largest loan in the pool is Town Center at Cobb (12%), which is secured by 559,940 sf of a 1.28 million sf regional mall located in Kennesaw, GA. Anchors at the property include Belk, JC Penney, Macy's Furniture, and Sears. The property is 90.8% occupied and had a DSCR of 2.17x as of year-end 2013. There is minimal rollover at the property over the next few years.

RATINGS SENSITIVITY

All classes maintain Stable Outlooks. Additional information on rating sensitivity is available in the report 'WFRBS Commercial Mortgage Trust 2012-C7' (Aug. 17, 2012), available at www.fitchratings.com.

Fitch affirms the following classes:

--$166.8 million class A-1 notes at 'AAAsf'; Outlook Stable;

--$418.0 million class A-2 notes at 'AAAsf'; Outlook Stable;

--$165.3 million class A-FL notes at 'AAAsf'; Outlook Stable;

--$0 class A-FX notes at 'AAAsf'; Outlook Stable;

--$82.8 million class A-S notes at 'AAAsf'; Outlook Stable;

--$58 million class B notes at 'AAsf'; Outlook Stable;

--$41.4 million class C notes at 'Asf'; Outlook Stable;

--$27.6 million class D notes at 'BBB+sf'; Outlook Stable;

--$48.3 million class E notes at 'BBB-sf'; Outlook Stable;

--$19.3 million class F notes at 'BBsf'; Outlook Stable;

--$19.3 million class G notes at 'Bsf'; Outlook Stable;

--$832.9 million* class X-A notes at 'AAAsf'; Outlook Stable.

* Notional amount and interest only.

Fitch does not rate the $248.4 million class X-B or the $34.5 million class H. The aggregate balance of class A-FL may be adjusted as a result of the exchange of all or a portion of the class A-FL certificates for the non-offered class A-FX 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-C7 -- Appendix' (Aug. 17, 2012).

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. 11, 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

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
Matthew McGowan, +1-212-908-0871
Associate 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

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Contacts

Fitch Ratings
Primary Analyst
Matthew McGowan, +1-212-908-0871
Associate 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