NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed all classes of Wells Fargo Bank, N.A. WFRBS 2012-C7 commercial mortgage pass-through certificates and maintains Stable Outlooks. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are due to the overall stable pool performance since issuance. As of the March 2015 distribution date, the pool's aggregate principal balance has been reduced by 3.3% to $1.067 billion from $1.104 billion at issuance. Five loans are on the servicer watchlist (4.6% of the pool), and two loans (1.9%) are in special servicing.
The first specially serviced loan is the Bear Creek Portfolio loan (1.6%), a three-property portfolio located in Petoskey, MI. The portfolio consists of two adjacent multifamily properties with 240 units and a retail center comprising 45,857 square feet (sf). The loan transferred to the special servicer in February 2014 due to payment default despite strong reported year-end (YE) 2013 performance - the servicer reported YE 2013 net operating income debt service coverage ratio (NOI DSCR) was 1.83x. The borrower and servicer are in disagreement over certain outstanding loan expenses, which have led to legal proceedings. A trial date is set for June 2015, and both parties are attempting to work towards a resolution. As of YE 2014, the portfolio was 98% occupied with a servicer reported DSCR of 1.31x.
The second specially serviced loan is collateralized by two self-storage properties located in CT and MA (0.3%). The loan is currently 90+ days delinquent and has not reported updated financials.
The largest loan in the pool is Northridge Fashion Center (14.2%), which is collateralized by 643,564 sf of a 1.52 million sf regional mall located in Northridge, CA. The property is shadow anchored by JC Penney, Macy's, Macy's Men's & Home, and Sears. The property was 96% occupied as of June 2014, compared to 88.7% at underwriting. The servicer reported third quarter 2014 (3Q'14) DSCR was 1.69x, compared to 1.46x at underwriting.
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. Collateral anchors are Belk and JC Penney (partial space of 31,026 sf). Other non-owned anchors include JC Penney, Macy's Furniture, and Sears. The property was 91% occupied with a servicer reported DSCR of 2.94x as of September 2014, compared to 84.2% and 1.6x, respectively, at underwriting.
RATINGS SENSITIVITIES
The Outlook remains Stable for all classes. No rating actions are expected unless there are material changes in property occupancy or cash flow.
Fitch affirms the following classes:
--$152.8 million class A-1 notes at 'AAAsf'; Outlook Stable;
--$418 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;
--Interest-only class X-A at 'AAA'; 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.
Fitch does not rate the class H certificates, or the interest-only class X-B. 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. 10, 2014 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:
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014);
--'Global Structured Finance Rating Criteria' (March 31, 2015).
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=812608
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=982647
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