Fitch Ratings has affirmed 11 classes of Wells Fargo Commercial Mortgage Securities Inc. (WFRBS) commercial mortgage pass-through certificates series 2012-C6. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are based on continued stable performance of the underlying pool since issuance. The pool has experienced no realized losses to date. Fitch has designated one loan (1.5%) as a Fitch Loan of Concern; no loans are specially serviced.
As of the January 2015 distribution date, the pool's aggregate principal balance has been reduced by 3.7% to $890.7 million from $925 million at issuance. Per the servicer reporting, two loans (1.3% of the pool) are defeased.
The Fitch Loan of Concern (1.5% of the pool) is secured by a 206 unit multi-family building located in St. Louis, MO, in the Central West End submarket. Occupancy at the property has been on a steady decline since issuance, dropping to 58% as of September 2014 from 86% in 2012. The decline in occupancy has also affected the debt service coverage ratio (DSCR), which was reported to be 0.76x at September 2014 compared to 1.37x at issuance. The servicer reports that the borrower continues with an aggressive outreach and advertising campaign to help increase occupancy.
The largest loan in the pool (8.4%) is secured by the National Cancer Institute (NCI) center, a 341,271-square foot (sf) office and lab facility in Frederick, MD, approximately 50 miles northwest of Washington D.C. and 50 miles west of Baltimore. The three-story building, which was constructed in 2011, is 100% leased to the Science Applications International Corporation-Frederick (SAIC-F) until the year 2021. The servicer reported DSCR was 1.43x as of June 2014.
The second largest loan of the pool (7.1%), Windsor Hotel Portfolio II, is secured by four full-service hotels located in California, Nevada, Georgia and North Carolina totaling 901 rooms. The portfolio consists of three Embassy Suites and one Renaissance Hotel. As of September 2014, occupancy and DSCR was reported to be 82% and 2.59x, a slight increase compared to the 79% and 2.26x reported at year-end 2013.
RATING SENSITIVITIES
The Rating Outlook for all classes remain Stable. 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 the rating sensitivity is available in the report 'WFRBS Commercial Mortgage Trust 2012-C6' (June 5, 2012) at www.fitchratings.com.
Fitch affirms the following classes as indicated:
--$23.2 million class A1 at 'AAAsf', Outlook Stable;
--$136.8 million class A2 at 'AAAsf', Outlook Stable;
--$67.8 million class A3 at 'AAAsf', Outlook Stable;
--$385.4 million class A4 at 'AAAsf', Outlook Stable;
--$713.8 million class X-A at 'AAAsf', Outlook Stable;
--$100.6 million class AS at 'AAAsf', Outlook Stable;
--$42.8 million class B at 'AAsf', Outlook Stable;
--$31.2 million class C at 'Asf', Outlook Stable;
--$47.4 million class D at 'BBB-sf', Outlook Stable;
--$13.9 million class E at 'BBsf', Outlook Stable;
--$13.9 million class F at 'Bsf', Outlook Stable.
Fitch does not rate the classes X-B or 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:
--'WFRBS Commercial Mortgage Trust 2012-C6 -- Appendix' (June 5, 2012).
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 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' (Aug. 4, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=974817
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