Fitch Affirms WFRBS 2011-C4

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 stable performance of the underlying collateral pool. Fitch modeled losses of 2.8% of the remaining pool; expected losses on the original pool balance total 2.6%. The pool has experienced no realized losses to date. Fitch has designated two loans (2%) as Fitch Loans of Concern, which includes one specially serviced asset (0.7%).

As of the April 2015 distribution date, the pool's aggregate principal balance has been reduced by 5.8% to $1.39 billion from $1.48 billion at issuance. Per the servicer reporting, one loan (0.3% of the pool) is defeased. 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 vacated in May 2014, and lease payments ceased upon the August 2014 expiration. 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 the specially-serviced loan (0.7%). It is secured by a 252-unit student housing property located in Fredonia, NY. The loan transferred in November 2014 due to imminent default. While the borrower continues to fund payments, discussions are ongoing with the servicer.

The largest loan in the pool (11%) 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 debt service coverage ratio (DSCR) was 2.14x as year-end (YE) 2014 compared to 2.11x as of YE 2013 and 1.91x at issuance. As of YE 2014, occupancy was 94% compared to 96% for YE 2013 and 92% at issuance.

RATING SENSITIVITIES

Rating Outlooks on classes A1 through G remain Stable due to increasing credit enhancement, continued paydown, and overall stable collateral performance. Fitch does not foresee positive or negative ratings migration unless a material economic or asset level event changes the underlying transaction's portfolio-level metrics.

Fitch affirms the following classes:

--$7 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. 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 then CMBS then Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (March 31, 2015);

--'Criteria for Rating Caps and Limitations in Global Structured Finance Transactions' (May 28, 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=864268

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748781

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=983527

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.

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

Source: Fitch Ratings

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