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 2015 distribution date. The pool's aggregate principal balance has been reduced by 3.5% to $1.23 billion from $1.28 billion at issuance. There are five loans on the servicer watch list; however, only two are Fitch Loans of Concern (2.2% of the pool).

The largest Fitch Loan of Concern (1.7% of the pool) is secured by a 78,514 square foot (sf) office building located in downtown Washington, DC in close proximity to the White House. As of year-end (YE) 2014, the debt service coverage ratio (DSCR) and occupancy has declined to 0.78x and 67%, respectively. The decline in performance primarily represents the departure of two major tenants. Despite recent performance, the subject has a favourable downtown location and there has been recent leasing activity. Fitch will continue to monitor.

The largest loan in the pool (12% 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 YE 2014, the subject was 96% occupied with a 1.68x 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.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following ratings as indicated:

--$36 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;

--$973,380,590* 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 is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Related Research

Wells Fargo Commercial Mortgage Trust 2012-LC5 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=692490

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=989057

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=989057

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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
Associate Director
+1-212-908-0871
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Karen Trebach
Senior Director
+1-212-908-0215
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Martin Nunnally
Associate Director
+1-212-908-0871
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Karen Trebach
Senior Director
+1-212-908-0215
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com