Fitch Affirms WFCM 2012-LC5

NEW YORK--()--Fitch Ratings has affirmed 12 classes of Wells Fargo Commercial Mortgage Trust 2012-LC5 commercial mortgage pass-through certificates, series 2012-LC5. 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. The pool has no specially serviced or delinquent loans as of the July 2014 distribution date. The pool's aggregate principal balance has been reduced by 2.1% to $1.25 billion from $1.28 billion at issuance. There are six loans on the servicer watchlist, mainly due to tenant and leasing issues.

One of the largest watchlist loans (0.7% of the pool) is secured by a 29,369 square foot (sf) retail property located in San Francisco, CA. The subject is entirely leased to two tenants: Walgreens (48% net rentable area [NRA]) and 24 Hour Fitness (52% NRA). The 24 Hour Fitness lease expires in September 2014 and the servicer has not obtained a lease update from the borrower. The property is situated in a favorable location on Market Street, therefore should 24 Hour Fitness not renew, Fitch expects the borrower would be able to re-tenant the space.

The largest loan in the pool (12.1% of the pool) is The Westside Pavilion, a 755,448 sf, three-level urban mall, 535,448 sf of which serves as the collateral for the loan. The property is located in Los Angeles, CA and anchored by Macy's (non-collateral), Macy's Home, Nordstrom, and Landmark Theatres. Performance has remained stable since issuance; as of year end (YE) 2013, the subject was 98% occupied with a 1.81x net operating income (NOI) debt service coverage ratio (DSCR).

RATING SENSITIVITIES

The Rating Outlooks on all classes remain 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 overall portfolio-level metrics. Additional information on rating sensitivity is available in the 'Wells Fargo Commercial Mortgage Trust 2012-LC5' (Oct. 17, 2012) New Issue report, available at www.fitchratings.com.

Fitch affirms the following classes as indicated:

--$54.5 million class A-1 at 'AAAsf'; Outlook Stable;

--$156.2 million class A-2 at 'AAAsf'; Outlook Stable;

--$556.7 million class A-3 at 'AAAsf'; Outlook Stable;

--$100 million class A-SB at 'AAAsf'; Outlook Stable;

--$991,934,053* class X-A 'AAAsf'; Outlook Stable;

--$118,138,000* class X-B 'A-sf'; Outlook Stable;

--$124.5 million class A-S at 'AAAsf'; Outlook Stable;

--$76.6 million class B at 'AA-sf'; Outlook Stable;

--$41.5 million class C at 'A-sf'; Outlook Stable;

--$49.5 million class D at 'BBB-sf'; Outlook Stable;

--$20.8 million class E at 'BBsf'; Outlook Stable;

--$23.9 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:

--'Wells Fargo Commercial Mortgage Trust 2012-LC5 -- Appendix' (Oct. 17, 2012).

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 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 then CMBS then Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'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=754389

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=852514

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
Martin Nunnally, +1 212-908-0871
Associate Director
Fitch Ratings, Inc.
33 Whitehall 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
Martin Nunnally, +1 212-908-0871
Associate Director
Fitch Ratings, Inc.
33 Whitehall 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