CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 13 classes of Wells Fargo Bank, N.A. (WFRBS) commercial mortgage pass-through certificates series 2011-C4. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations reflect the stable performance of the underlying collateral pool. Fitch modeled losses of 2% of the remaining pool; expected losses on the original pool balance total 2%. The pool has experienced no realized losses to date. The master servicer has placed three loans (4.8% of the pool) on the watchlist and of those, Fitch has designated two loans (2.2%) as Fitch Loans of Concern. There are no delinquent loans or specially serviced loans in this pool.
As of the April 2014 distribution date, the pool's aggregate principal balance has been reduced by 3.7% to $1.43 billion from $1.48 billion at issuance. Per the servicer reporting, one loan (0.1% of the pool) is defeased. De minimis interest shortfalls are currently affecting class H.
The largest contributor to expected losses is secured by a 423,556 square foot (sf) (235,656 sf is collateral) shopping mall located in Wausau, WI (1.3% of the pool). The mall is anchored by Younkers, Sears and JC Penney, which is the only anchor that is part of the collateral. JC Penney's lease expires in August 2014 and the company has stated that it will not be renewed. The loan's sponsor, CBL & Associates Properties, Inc., is attempting to secure a replacement tenant. While the loan remains current and a replacement tenant may be found, Fitch's stressed analysis assumed the anchor space remained vacant.
The next largest contributor to expected losses is secured by 372-unit student housing property located in Gainesville, FL (0.9% of the pool). The servicer-reported year-end (YE) 2013 debt service coverage ratio (DSCR) was 0.84x compared to 0.99x at YE 2012 and 1.35x at issuance. Occupancy had dropped to 65% as of YE 2012, but has since recovered to 96% as of YE 2013 due in part to a new management company. The loan is on the watchlist, but remains current.
The largest loan in the pool (10.9%) is secured by a 1.2 million sf (648,728 sf is collateral) regional mall located in Appleton, WI. The mall, which is the second largest in WI, is anchored by JC Penney, Sears, Target, Macy's, Younkers and Scheel's. Scheel's is the only anchor that is part of the collateral. The servicer-reported DSCR was 2.11x at YE 2013 compared to 1.94x at YE 2012 and 1.91x at issuance. As of YE 2013, occupancy was 96% compared to 97% for YE 2012 and 92% at issuance.
RATING SENSITIVITY
Rating Outlooks on classes A1 through G remain Stable due to increasing credit enhancement, continued paydown, and overall stable loss expectations.
Fitch affirms the following classes as indicated:
--$38.5 million class A-1 at 'AAAsf', Outlook Stable;
--$201.4 million class A-2 at 'AAAsf', Outlook Stable;
--$164.9 million class A-3 at 'AAAsf', Outlook Stable;
--$90 million class A-FL at 'AAAsf', Outlook Stable;
--$0 class A-FX at 'AAAsf', Outlook Stable;
--$681.4 million class A-4 at 'AAAsf', Outlook Stable;
--Interest-only class X-A at 'AAAsf', Outlook Stable;
--$42.6 million class B at 'AAsf', Outlook Stable;
--$42.6 million class C at 'A+sf', Outlook Stable;
--$33.3 million class D at 'A-sf', Outlook Stable;
--$51.8 million class E at 'BBB-sf', Outlook Stable;
--$20.4 million class F at 'BBsf', Outlook Stable;
--$18.5 million class G at 'Bsf', Outlook Stable.
Fitch does not rate the class H 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 20, 2014);
--'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=748821
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=831207
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