NEW YORK--(BUSINESS WIRE)--Fitch Ratings has upgraded two and affirmed five classes of Washington Mutual Asset Securities Corporation (WAMU) commercial mortgage pass-through certificates series, 2005-C1. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The upgrades are the result of increased credit enhancement due to scheduled loan payoffs, including the largest loan in the deal at Fitch's last rating action. The affirmations reflect the relatively stable collateral performance since the last rating action.
Fitch modeled losses of 4.6% of the remaining pool; expected losses on the original pool balance total 0.3%, including $1.2 million (0.2% of the original pool balance) in realized losses to date. Fitch has designated four loans (13%) as Fitch Loans of Concern, which does not include any specially serviced loans.
As of the March 2014 distribution date, the pool's aggregate principal balance has been reduced by 96.9% to $20.2 million from $649.5 million at issuance. No loans are defeased. Interest shortfalls are currently affecting classes M through N.
The largest loan of concern is the Crescent Bay Building loan (7.8%), which is secured by a 11,970 square foot (sf) office property located in Laguna Beach, CA. Property performance has declined due to a loss of tenants at lease expirations and the inability to release the vacant space. The vacant space is being marketed through a broker. As of August 2013, the property's occupancy was below market at 62.3%. Per REIS as of 4th quarter 2013, the Los Angeles office market vacancy is 15.5% with average rent of $33 sf. The loan matures in May 2014; however, per the master servicer, the borrower has requested a final payoff.
RATING SENSITIVITY
Rating Outlooks on classes G through J remain Stable due to increasing credit enhancement and continued paydown.
Fitch upgrades the following classes:
--$2.7 million class G to 'AAAsf' from 'AAsf', Outlook Stable;
--$8.1 million class H to 'Asf' from 'BBBsf', Outlook Stable.
Fitch affirms and Revises Recovery Estimates of the following classes as indicated:
--$3.3 million class J at 'BBsf', Outlook Stable;
--$2.4 million class K at 'CCCsf', RE 100%;
--$2.4 million class L at 'Csf', RE 100%;
--$812,000 class M at 'Csf', RE 40%;
--$460,308 class N at 'Dsf', RE 0%.
The class A-1, A-2, A-J, B, C, D, E and F certificates have paid in full. Fitch previously withdrew the rating on the interest-only class X certificates.
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 24, 2013);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=826243
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