NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed all classes of Wachovia Bank Commercial Mortgage Trust, commercial mortgage pass-through certificates series 2003-C9. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations of the distressed ratings indicate minimal changes in expected losses since the last rating action.
There are nine loans remaining in the pool. Fitch designated three loans (73.6%) as Fitch Loans of Concern, all of which are specially serviced assets. Fitch modeled losses of 48.6% of the remaining pool; expected losses on the original pool balance total 7.6%, including $79.3 million (6.9% of the original pool balance) in realized losses to date. As of the September 2015 distribution date, the pool's aggregate principal balance has been reduced by 98.6% to $16 million from $1.15 billion at issuance. Interest shortfalls are currently affecting classes G through P.
The largest contributor to expected losses is the Southwest Commons Shopping Center (37.6% of the pool) an 84,983 square foot (sf) retail center located in Worcester, MA, approximately 45 miles west of Boston. The loan transferred to special servicing in February 2012 due to imminent default after the grocery anchor vacated. The asset became real estate owned (REO) in February 2013, and the special servicer is working on marketing and leasing the property. In addition, the special servicer reports that the property's occupancy is 35% as of June 2015.
The next largest contributor to expected losses is the specially-serviced Swan Creek MHC loan (21.8%), which is secured by a 201 pad mobile home community located in New Boston, MI, approximately 27 miles southwest of Detroit. The loan has been in special servicing since December 2013 for maturity default. The servicer reports that the property appears to be 50% occupied.
The third largest contributor to expected losses is the South Shades Crest Station (14.2%), a 25,500 sf shadow anchored retail center located in Hoover, AL. The loan transferred to special servicing in December 2013 for maturity default. The loan became REO in November 2014. The special servicer reports the property was 68% occupied as of June 2015.
Class F is expected to remain at 'Csf' due to the expectation of losses. Once losses are incurred the class will be downgraded to 'D.' The remaining classes have all experienced principal losses and are rated 'Dsf'.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following classes:
--$12 million class F at 'Csf'; RE 70%.
--$4 million class G at 'Dsf'; RE 0%;
--$0 class H at 'Dsf'; RE 0%;
--$0 class J at 'Dsf'; RE 0%;
--$0 class K at 'Dsf'; RE 0%;
--$0 class L at 'Dsf'; RE 0%;
--$0 class M at 'Dsf'; RE 0%;
--$0 class N at 'Dsf'; RE 0%;
--$0 class O at 'Dsf'; RE 0%.
The class A-1, A-2, A-3, A-4, B, C, D, E and X-P certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the rating on the interest-only class X-C certificates.
Additional information is available at www.fitchratings.com.
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
(pub. 10 Dec 2014)
Dodd-Frank Rating Information Disclosure Form