Fitch Affirms Wells Fargo Bank, N.A. Series 2010-C1

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed eight classes of Wells Fargo Bank N.A.'s commercial mortgage pass-through certificates series 2010-C1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are the result of stable performance of the underlying pool since issuance. As of the July 2016 distribution date, the pool's aggregate principal balance has been reduced by 14.6% to $628.3 million from $735.9 million at issuance. The pool has experienced no realized losses to date. Fitch has designated two (3.5%) Fitch Loans of Concern (FLOC), including one specially serviced loan, due to declining performance. Five loans (12.3%) are defeased. Interest shortfalls are currently affecting the non-rated class. There were variances to criteria related to classes B and C whereby the surveillance criteria indicated rating upgrades were possible. Fitch determined that upgrades were not warranted due to upcoming lease expirations of larger tenants, within the top 15 assets and exposure to single tenants (22.7% of the pool).

The largest loan (19.9% of the pool) was originally secured by a portfolio of 14 single-tenant properties which consisted of seven office buildings, five industrial distribution centers, one data center and one R&D facility. A partial defeasance for three properties (two office and one industrial), which represents approximately 25% of the of the original loan balance, was completed in second quarter 2015. The portfolio now consists of 11 properties located in various states with a combined size of 2.5 million square feet. Occupancy for the collateral has remained above 97% for the past three years.

The second largest loan (7.8% of the pool) is secured by a regional mall located in Watertown, NY and is anchored by Sear's, Burlington Coat Factory, and Gander Mountain. Per the March 2016 rent roll, the property was 91.7% occupied. The servicer-reported debt service coverage ratio (DSCR) was 2.44x as of year-end (YE) 2015. Approximately 20.9% of the net rentable area (NRA) is scheduled to expire within the next year, including its largest anchor tenant. Sear's (12.6% of NRA) is required to provide notice within one year of its August 2017 lease expiration. Fitch will continue to monitor the loan as updates are received.

The specially serviced loan (0.6% of the pool) is secured by a 75,155 square foot (sf) retail property located in Dade City, FL. The loan transferred to special servicing in December 2014 due to payment default, as the anchor grocery tenant went dark in the fall of 2013. Occupancy remains significantly distressed at 37% as of May 31, 2016. Foreclosure proceedings are underway.

The larger FLOC (3% of the pool) is secured by 243-key full service hotel located in Arlington, VA. The property was converted from the Radisson into a Hilton Garden Inn in 2014, and underwent major renovations in 2015. Rooms were offline due to the logistics of the renovations. As a result, servicer reported occupancy and DSCR decreased to 57% and 1.24x, respectively as of YE 2015 from 76.4% and 2.25x at YE 2014. The master servicer expects the conversion will be completed by the end of this year. Fitch will continue to monitor the performance of the loan.

RATING SENSITIVITIES

The Positive Outlook on classes B and C reflect the potential for an upgrade should the pool continue to deleverage, if additional loans defease, and the larger tenants within the top 15 renew their leases. The Stable Outlooks on the remaining classes reflect overall stable pool performance. Downgrades are possible with significant performance decline.

DUE DILIGENCE USAGE

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

Fitch has affirmed the following classes:

--$54.4 million class A-1 at 'AAAsf'; Outlook Stable;

--$443.3 million class A-2 at 'AAAsf'; Outlook Stable;

--$497.6 million class X-A* at 'AAAsf'; Outlook Stable;

--$22.1 million class B at 'AAsf'; Outlook Positive;

--$31.3 million class C at 'Asf'; Outlook to Positive from Stable;

--$34 million class D at 'BBBsf'; Outlook Stable;

--$13.8 million class E at 'BBB-sf'; Outlook Stable;

--$12.9 million class F at 'Bsf'; Outlook Stable.

* Interest only.

Fitch does not rate the $16,557,805 class G certificates or the $130,617,805 interest only class X-B.

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=1010025

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1010025

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/20160805005479/en/

Fitch Ratings
Primary Analyst
Tiffany Pierce
Associate Director
+1-212-908-9107
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Elizabeth Fogerty, New York, +1 212-908-0526
Email: [email protected]
Hannah James, New York, + 1 646-582-4947
Email: [email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Weibo Announces Second Quarter 2026 Unaudited Financial Results
• Klarna Bank AB Publishes H1 2026 Financial Report
• Ridgeview Partners Announces Recommended Acquisition of Pinewood Technologies Group plc