Fitch Affirms WFCG 2015-BXRP

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed four classes of WFCG Commercial Mortgage Trust 2015-BXRP Commercial Mortgage Pass-Through Certificates series 2015-BXRP. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations reflect the overall stable performance of the remaining collateral. Based on Fitch's surveillance analysis, which uses the same framework that was set out at issuance, the collateral's debt service coverage ratio (DSCR) and other performance metrics have remained relatively unchanged.

The WFCG Commercial Mortgage Trust series 2015-BXRP currently represents the beneficial interest in the mortgage loan securing the fee interest in and associated rents of a portfolio of 32 retail properties totaling 5.4 million square-feet (sf).

At issuance, the portfolio contained 45 retail properties totaling 6.6 million sf, but 13 properties were released in 2015 resulting in a 20.1% paydown. Per the transaction documents, the first prepayment amounts up to 20% are paid to the bonds pro rata. Subsequent paydown from any additional releases will be applied sequentially.

Twenty-one of the current 32 properties (54%) are anchored retail centers and 11 (46%) are grocery-anchored centers. The largest exposure by state includes: MI (17%), CO (15%) and FL (14.6%).

As of year-end 2015, the servicer reported DSCR was reported to be 4.55x compared to 4.61x at issuance. Portfolio occupancy remains stable at 91% compared to 95% at issuance.

Proceeds from the original loan were used to acquire the portfolio from American Realty Capital Properties, Inc. for a purchase price of $1.098 billion. The interest-only, floating-rate loan has a two-year term with three one-year extension options.

RATING SENSITIVITIES

The Rating Outlook for all classes remains Stable due to stable collateral performance. Although the transaction has been paid down by 20.1%, only a slight increase in credit enhancement was experienced due to the pro-rata nature of the paydown. In the event that more properties are released and the transaction receives further paydown, upgrades may be warranted with stable or improved performance. Fitch does not foresee positive or negative ratings migration until a material increase or decrease in collateral performance is experienced.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch affirms the following classes:

--$325.9 million class A at 'AAAsf'; Outlook Stable;

--$70.7 million class B at 'AA-sf'; Outlook Stable;

--$49.8 million class C at 'A-sf'; Outlook Stable;

--$54.6 million class D at 'BBB-f'; Outlook Stable.

Fitch does not rate class E, F and G certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (pub. 27 Aug 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870009

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Related Research

WFCG Commercial Mortgage Trust 2015-BXRP -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=824268

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1002436

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1002436

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/20160413006500/en/

Fitch Ratings
Primary Analyst
Daniel Anderson, +1-312-606-2305
Associate Director
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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