Fitch Affirms WBCMT 2003-C9

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed nine 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. Losses to class F continue to be considered inevitable and losses on the remaining classes have already been incurred.

There are nine loans remaining in the pool, the three largest of which are specially serviced assets. Fitch modeled losses of 66.3% of the remaining pool; expected losses on the original pool balance total 7.8%, including $79.6 million (6.9% of the original pool balance) in realized losses to date. As of the July 2016 distribution date, the pool's aggregate principal balance has been reduced by 98.7% to $15.3 million from $1.15 billion at issuance. Interest shortfalls are currently affecting classes F through P.

The largest specially serviced asset c is the Southwest Commons Shopping Center (39.5% 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 and became real estate owned (REO) in February 2013. The property recently sold at auction and the closing is scheduled for the first week of September 2016. As of June 2016, occupancy was 35%.

The second largest loan is the specially-serviced Swan Creek MHC loan (22.3%), 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 is 49% occupied. The loan is categorized as non-performing matured and foreclosure is expected.

The third largest asset is the South Shades Crest Station (14.5%), 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 69% occupied as of June 2016.

RATING SENSITIVITIES

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'.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

Fitch has affirmed the following ratings and revises RE as indicated:

--$11.6 million class F at 'Csf'; RE 45%.

--$3.7 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.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 18 Jul 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=884963

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 16 Jun 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=882401

Global Structured Finance Rating Criteria (pub. 27 Jun 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=883130

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1010504

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1010504

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160817006262/en/

Fitch Ratings
Primary Analyst
Catherine Barbieri
Associate Director
+1-212-908-0638
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Britt Johnson
Senior Director
+1-312-606-2341
or
Media Relations
Sandro Scenga
+1-212-908-0278
New York
[email protected]

Source: Fitch Ratings

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