OREANDA-NEWS. Fitch Affirms WFCM 2012-LC5 New York Fitch Ratings has affirmed 12 classes of Wells Fargo Commercial Mortgage Trust 2012-LC5 commercial mortgage pass-through certificates, series 2012-LC5. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations reflect stable pool performance since issuance. The pool has no specially serviced or delinquent loans as of the June 2016 distribution date. The pool's aggregate principal balance has been reduced by 4.9% to $1.21 billion from $1.28 billion at issuance. Approximately 0.7% of the pool is defeased. There are five loans on the servicer watch list; however, only two are considered Fitch Loans of Concern (2.2% of the pool).

There was one variance from criteria related to class C. The surveillance criteria indicated that a rating upgrade above the recommended rating was possible for the class. Fitch has determined an upgrade is not warranted at this time due to non-material changes since issuance.

The largest Fitch Loan of Concern (1.7% of the pool) is secured by a 78,514 square foot (sf) office building located in downtown Washington, DC in close proximity to the White House. Occupancy has fluctuated historically, which has affected performance since issuance. Occupancy dropped from 95% at issuance to 76% as of year-end (YE) 2013 and 67% as of YE 2014. As of YE 2015, the net operating income (NOI) debt service coverage ratio (DSCR) and occupancy were 0.67x and 86%, respectively. While occupancy has recently increased, another large tenant is scheduled to vacate the property this year. Fitch will continue to monitor.

The largest loan in the pool (12% of the pool) is The Westside Pavilion, a 755,448 sf, three-level urban mall, 535,448 sf of which serves as the collateral for the loan. The property is located in Los Angeles, CA and anchored by Macy's (non-collateral), Macy's Home, Nordstrom, and Landmark Theatres. Performance has remained stable since issuance; as of YE 2015, the subject was 93% occupied with a 1.65x NOI DSCR.

RATING SENSITIVITIES

Rating Outlooks remain Stable for classes A-1 through A-S and classes D through F as overall pool performance has been stable since issuance. The Positive Outlooks on classes B, C, and X-B reflect an increase in class credit enhancement, position in the capital structure, and potential paydown from maturities in 2017. Upgrades may occur with stable to improved pool performance and significant paydown or defeasance. Additional information on rating sensitivity is available in the 'Wells Fargo Commercial Mortgage Trust 2012-LC5' (Oct. 17, 2012) New Issue report, available at www. fitchratings. com.

DUE DILIGENCE USAGE

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

Fitch has affirmed the following ratings and revised Outlooks where indicated:

--$18.3 million class A-1 at 'AAAsf'; Outlook Stable;

--$156.2 million class A-2 at 'AAAsf'; Outlook Stable;

--$556.7 million class A-3 at 'AAAsf'; Outlook Stable;

--$100 million class A-SB at 'AAAsf'; Outlook Stable;

--$955,730,628* class X-A 'AAAsf'; Outlook Stable;

--$118,138,000* class X-B 'A-sf'; Outlook to Positive from Stable;

--$124.5 million class A-S at 'AAAsf'; Outlook Stable;

--$76.6 million class B at 'AA-sf'; Outlook to Positive from Stable;

--$41.5 million class C at 'A-sf'; Outlook to Positive from Stable;

--$49.5 million class D at 'BBB-sf'; Outlook Stable;

--$20.8 million class E at 'BBsf'; Outlook Stable;

--$23.9 million class F at 'Bsf'; Outlook Stable.