Fitch Affirms WFRBS 2012-C8
CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 15 classes of Wells Fargo Bank, National Association WFRBS Commercial Mortgage Trust 2012-C8 commercial mortgage pass-through certificates (WFRBS 2012-C8). 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. Fitch has not designated any loans as Fitch Loans of Concern, and no loans are delinquent or in special servicing. According to the master servicer reporting, one loan (0.6%) is on the watchlist due to a slight decline in both occupancy and the debt service coverage ratio (DSCR).
As of the June 2014 distribution date, the pool's aggregate principal balance has been reduced by 1.7% to $1.28 billion from $1.3 billion at issuance. No loans are defeased.
The largest loan of the pool (11.7%) is secured by a 1.1 million square foot (sf) office building located two blocks from City Hall and the World Trade Center site in downtown Manhattan. The property was constructed in 1958 and has undergone approximately $22 million in renovations and updates since 2005. Major tenants include the City of New York, HF Management Services and the State of New York. As of year-end (YE) 2013, the property was 86% occupied. And the DSCR was reported to be 1.54x at YE 2013.
The second largest loan (8%) is collateralized by a mix of 20 single-tenant industrial and office properties located in 12 different states. The portfolio consists of 17 industrial properties and two flex/lab buildings occupied by 12 unique tenants, eight of which are headquartered at their respective facilities. The portfolio was 100% occupied as of YE 2013. The DSCR was reported to be 2.94x at YE 2013
Fitch is currently monitoring the performance of the Plaza on Richmond loan (3.4%) which is secured by a 193,636 sf retail property located in Houston, TX in the heart of the Galleria/Uptown submarket. The subject property is anchored by a 24- Hour Fitness with other major tenants consisting of T.J. Maxx, Office Depot and Golf Galaxy. The Office Depot lease expires Aug. 31, 2014, and Fitch will continue to monitor the lease renewal and performance of the asset. As of YE 2013, occupancy was reported at 86% and the DSCR was 1.69x.
Rating Outlooks on classes A-1 through G remain Stable due to increasing credit enhancement and continued paydown. No rating actions are expected unless there are material changes to property occupancies or cash flows, increased delinquencies, or loans transferred to special servicing. The pool has maintained performance consistent with issuance. Additional information on rating sensitivity is available in the report 'WFRBS Commercial Mortgage Trust 2012-C8' (Aug. 31, 2012), available at www.fitchratings.com
Fitch affirms the following classes:
--$74.4 million class A-1 at 'AAAsf', Outlook Stable;
--$187.7 million class A-2 at 'AAAsf', Outlook Stable;
--$414.1 million class A-3 at 'AAAsf', Outlook Stable;
--$96.9 million class A-SB at 'AAAsf', Outlook Stable;
--$115 million class A-FL at 'AAAsf', Outlook Stable;
--$0 class A-FX at 'AAAsf', Outlook Stable;
--$113.8 million class A-S at 'AAAsf', Outlook Stable;
--$1,001.9 million class X-A at 'AAAsf', Outlook Stable;
--$66.7 million class X-B at 'AAsf', Outlook Stable;
--$66.7 million class B at 'AAsf', Outlook Stable;
--$43.9 million class C at 'Asf', Outlook Stable;
--$26 million class D at 'BBB+sf', Outlook Stable;
--$45.5 million class E at 'BBB-sf', Outlook Stable;
--$22.8 million class F at 'BBsf', Outlook Stable;
--$26 million class G at 'Bsf', Outlook Stable.
Fitch does not rate the class H certificates.
Wells Fargo Bank, N.A. is the swap counterparty for the floating rate class A-FL. In the event breakage costs are due to the swap counterparty from the trust, any breakage costs will only be paid after all payments on the class A-FL certificates are paid in full. The aggregate balance of the 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 fixed rate class A-FX.
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-C8' (Aug. 31, 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 >> CMBS >> Criteria Reports
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (May 20, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013);
--'WFRBS Commercial Mortgage Trust 2012-C8' (Aug. 31, 2012).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
WFRBS Commercial Mortgage Trust 2012-C8 (US CMBS)