Fitch Places Four Classes of WFRBS 2014-C22 on Rating Watch Negative

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has placed four classes on Rating Watch Negative and revised the Rating Outlook to Negative on one class of Wells Fargo Bank, N.A.'s WFRBS Commercial Mortgage Trust series 2014-C22 commercial mortgage trust pass-through certificates. A full list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The Rating Watch Negative placement and Outlook revision are due to the significant decline in performance and recent transfer to special servicing of the eleventh-largest loan in the pool ($27.1 million, 1.8% of the pool). The multifamily property is located in the Bakken shale region of North Dakota, a market that has been severely affected by low oil prices. Fitch analysts recently visited the area to assess the market conditions and demand for housing. Fitch visited the property and confirmed the low demand for housing in the area.

The specially-serviced States Addition Apartments loan is secured by a portfolio of three apartment complexes containing 235 units located in Dickinson, ND (Bakken Formation). The loan transferred to special servicing in February 2016 for payment default; the property has suffered occupancy declines of 50% as well as reduced rents. The local economy and property are highly dependent on the area's oil industry, and the downturn in the petroleum sector and subsequent cutbacks in the local oil drilling-related industries has had a negative impact on the ND and Dickinson economies. The property's occupancy and debt-service coverage ratio (DSCR) as of December 2015 declined to 53% from 94% and 0.60x from 1.35x. A recent valuation was unavailable but has been ordered by the special servicer. The loan is categorized as 60-days delinquent.

RATING SENSITIVITIES

The Rating Watch Negative placements are due to the uncertainty of value, as updated appraisals are pending. In addition, the special servicer's workout plan is unknown although a sale of the property in the near term is unlikely due to the depressed market conditions. Downgrades of one category or more are possible to these classes should the updated information exceed conservative estimates. Rating actions are expected in three to six months. The Rating Outlook revision indicates the potential for a negative rating action in the next 1-2 years should overall pool performance decline.

DUE DILIGENCE USAGE

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

Fitch placed the following classes on Rating Watch Negative:

--Interest-only X-C at 'BBsf';

--Interest-only X-D at 'Bsf';

--$31.6 million class E at 'BBsf;

--$14.9 million class F at 'Bsf'.

Fitch revised the Rating Outlook to the following class as indicated:

--$111.6 million class D at 'BBB-sf'; Outlook to Negative from Stable.

Additional information is available at www.fitchratings.com.

Applicable Criteria

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

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

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

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1001115

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/20160317006275/en/

Fitch Ratings
Primary Analyst
Lisa Cook, +1-212-908-0665
Director
Fitch Ratings Inc.
33 Whitehall St.
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

---

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

---

You May Also Be Interested In

• Robinhood explores first credit card-backed bond sale - report
• First Cigarette Butts, Now Vapes: A New Wave of Toxic Tobacco Trash Is Washing Up on America's Beaches
• Wells Fargo Starts MDU Resources (MDU) at Overweight