NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed eight classes of Wells Fargo Bank N.A.'s commercial mortgage pass-through certificates series 2010-C1. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations reflect stable portfolio performance since issuance. There are no specially serviced or delinquent loans. The pool has experienced no realized losses to date. Fitch has designated two loans (1.7% of the pool) as Fitch Loans of Concern (FLOC).
As of the August 2014 distribution date, the pool's aggregate principal balance has been reduced by 5.5% to $695.2 million from $735.9 million at issuance. Per the servicer reporting, one loan (0.9% of the pool) is defeased.
The largest loan in the pool (25.1% of the pool) is secured by a portfolio of 14 properties which consist of seven office buildings, five industrial distribution centers, one data center and one R&D facility. The properties are located in various states and are all single-tenant properties with a combined size of 3.6 million square feet. The portfolio has maintained occupancy greater than 97% for the past three years.
The second-largest loan in the pool (7.4% of the pool) is secured by a regional mall located in Watertown, NY, which is anchored by Sear's, Burlington Coat Factory, and Gander Mountain. As of March 2014, occupancy had rebounded to 95.3% from 88.2% at year-end (YE) 2012, and 93.6% at issuance. No more than 4% in lease rollover is expected for the remainder of 2014 and 2015.
The largest FLOC (1.1% of the pool) is secured by a 115-unit student housing complex located near Western Michigan University in Kalamazoo, Michigan. The one-year leases generally commence in August of each year. The servicer noted market conditions have been negatively impacted by lower enrollment at the University. The servicer-reported debt service coverage ratio (DSCR) and occupancy have declined to 0.55x and 80.7% respectively as of YE 2013, compared to 0.80x with 91.30% at YE 2012.
RATING SENSITIVITIES
The Rating Outlook for all classes remains Stable. No rating actions are expected unless there are material changes to property occupancies or cash flows, increased delinquencies, or loans transferred to special servicing.
Fitch affirms the following classes as indicated:
--$121.3 million class A-1 at 'AAAsf'; Outlook Stable;
--$443.3 million class A-2 at 'AAAsf'; Outlook Stable;
--$563.6 million class X-A* at 'AAAsf'; Outlook Stable;
--$22.1 million class B at 'AAsf'; Outlook Stable;
--$31.3 million class C at 'Asf'; Outlook Stable;
--$34 million class D at 'BBBsf'; Outlook Stable;
--$13.8 million class E at 'BBB-sf'; Outlook Stable;
--$12.9 million class F at 'Bsf'; Outlook Stable.
(*) interest only.
Fitch does not rate the $16,557,805 class G certificates or the $130,617,805 interest only class X-B.
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=858534
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