Fitch Affirms Wachovia Bank Commercial Mortgage Trust, 2005-C17

CHICAGO--(BUSINESS WIRE)--Fitch Ratings affirms Wachovia Bank Commercial Mortgage Trust, series 2005-C17 commercial mortgage pass-through certificates as follows:

--$368 million class A-1A at 'AAA';

--$272.7 million class A-2 at 'AAA';

--$82 million class A-3 at 'AAA';

--$224.4 million class A-PB at 'AAA';

--$1.08 billion class A-4 at 'AAA';

--$187.2 million class A-J at 'AAA';

--Interest only class X-P* at 'AAA';

--Interest only class X-C* at 'AAA';

--$74.9 million class B at 'AA';

--$23.8 million class C at 'AA-';

--$47.7 million class D at 'A';

--$27.2 million class E at 'A-';

--$27.2 million class F at 'BBB+';

--$30.6 million class G at 'BBB';

--$37.4 million class H at 'BBB-';

--$6.8 million class J at 'BB+';

--$10.2 million class K at 'BB';

--$13.6 million class L at 'BB-';

--$6.8 million class M at 'B+';

--$6.8 million class N at 'B';

--$6.8 million class O at 'B-'.

Class P is not rated by Fitch.

The ratings affirmations are the result of stable performance and minimal paydown since issuance. As of the August 2008 remittance report the transaction has paid down 5.6% to $2.6 billion from $2.72 billion at issuance. In total, 25 loans (11.8%) have defeased.

In total, 17 loans are considered Fitch loans of concern (6.7%), including one specially serviced loan (1.7%). The specially serviced loan is collateralized by a multifamily property located in San Diego, CA. The loan is current, but it was transferred to special servicing in April 2008 due to imminent monetary default. According to the special servicer, the borrower missed a principal paydown required by the loan documents. The borrower's dispute over the trigger event is being evaluated. Losses are not expected at this time.

Fitch reviewed the year-end (YE) 2007 operating data for the five shadow rated loans (15.9%): One and Two International Place (8.2%), Tharaldson Hotel Pool I-B (2.8%), Tharaldson Hotel Pool I-A (2.0%), Great Wolf Resorts Pool (1.8%) and 200 Varick Street (1.1%). Based on their stable performance since issuance, the loans maintain investment grade shadow ratings.

The largest shadow rated loan, One and Two International Place, is a 1,852,501 square foot (sf) class A office building in Boston, MA. Current occupancy is 93.8% compared to 89.6% at issuance.

Occupancy levels of the additional four shadow rated loans remained relatively stable since issuance: the Tharaldson Pool I-B YE2007 portfolio occupancy was 82.8%, compared to 77.1% at issuance; the Tharaldson Pool I-A YE2007 portfolio occupancy was 76.5%, compared to issuance of 75.2%; Great Wolf Resorts Pool remained stable with YE2007 occupancy of 64.7%, compared to 63.6% at issuance; and, 200 Varick YE2007 occupancy was 100%, compared to 97.1% at issuance.

There is limited near-term refinance risk with no loan maturing in 2008, 1.1% in 2009 and 7.5% in 2010.

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