OREANDA-NEWS. Fitch Ratings has affirmed 11 classes of Wells Fargo Bank, N. A. Commercial Mortgage Trust commercial mortgage pass-through certificates series 2011-C5 (WFRBS 2011-C5). A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect the overall stable performance of the pool's underlying collateral since issuance. Fitch modeled losses of 2.2% of the remaining pool; expected losses based on the original pool balance are 1.9%.

As of the July 2016 distribution date, the pool's aggregate principal balance has paid down by 13.7% to $942 million from $1.09 billion at issuance. Since the last rating action and as of the July 2016 distribution report, 10 loans totaling $86.9 million were repaid at or prior to their 2016 scheduled maturity dates. The pool has experienced no realized losses to date. Seven loans (5.6%) are defeased. Fitch has designated six loans (3.6%) as Fitch Loans of Concern. There are currently no specially serviced loans, however, since issuance, one loan (0.7%) had been in special servicing due to a borrower bankruptcy, but was subsequently returned to the master servicer in July 2013 following a change in ownership. Interest shortfalls are currently affecting the non-rated class H.

There were variances to criteria related to classes B, C, and D whereby the surveillance criteria indicated rating upgrades were possible. However, Fitch determined that upgrades were not warranted due to pool concentrations, tenant rollover concerns on select loans in the top 15, Sports Authority tenant exposure and limited upcoming loan maturities.

Of the original pool of 75 loans at issuance, 64 loans currently remain. With loan payoffs, the retail concentration has grown to nearly 50% of the pool, which includes five of the top 15 loans (39.9%). The largest loan represents nearly 21% of the pool and the top five loans are nearly 48% of the pool. Upcoming loan maturities are limited to 3.4% in 2016, 1.7% in 2018 and 1.3% in 2020, while the remaining 93.6% is concentrated in 2021.

Approximately 85% of the pool reported 2015 financials. Based on financial statements for the remaining loans in the pool, the overall net operating income (NOI) improved 30.6% since issuance and 7% over 2014 reported financials.

The largest loan (20.5% of the pool) is secured by an 878,974 square foot (sf) lifestyle center comprised of retail and office space located in Austin, TX. The center was 98.8% occupied as of the March 2016 rent roll. Non-collateral anchors include Dillard's and Macy's and collateral anchors include Dick's Sporting Goods and Neiman Marcus. The servicer-reported NOI debt service coverage ratio (DSCR) improved to 2.18x at year-end (YE) 2015 from 1.94x at YE 2014. However, over this same period, property occupancy declined slightly to 94% from 97%. Total mall store sales were $664 per square foot (psf) for 2015.

The largest Fitch Loan of Concern (1.5%) is secured by a 159,681 sf shopping center located in Amarillo, TX. The property is anchored by Office Depot and includes national inline tenants such as Starbucks, The UPS Store, Domino's Pizza, and GNC. Property occupancy declined to 66.2% as of March 2016 compared to 94% at YE 2014 due to the closing of the former anchor, Shepler's Boots and Jeans (previously occupying 20% of the center's net rentable area), in August 2015. The annualized year-to-date March 2016 servicer-reported NOI DSCR was 1.15x, compared to 1.45x at YE 2015. Fitch will continue to monitor the loan as leasing status updates are received.

RATING SENSITIVITIES

Rating Outlooks for all classes remain Stable due to increasing credit enhancement and expected continued paydown. Future upgrades are possible as the pool continues to pay down and credit enhancement increases. Downgrades may be possible should overall performance decline significantly.

DUE DILIGENCE USAGE

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

Fitch has affirmed the following classes:

--$35.8 million class A-2 at 'AAAsf'; Outlook Stable;

--$107.9 million class A-3 at 'AAAsf'; Outlook Stable;

--$471 million class A-4 at 'AAAsf'; Outlook Stable;

--$85.9 million class A-S at 'AAAsf'; Outlook Stable;

--$700.6 million class X-A* at 'AAAsf'; Outlook Stable;

--$54.6 million class B at 'AAsf'; Outlook Stable;

--$40.9 million class C at 'Asf'; Outlook Stable;

--$25.9 million class D at 'BBB+sf'; Outlook Stable;

--$49.1 million class E at 'BBB-sf'; Outlook Stable;

--$17.7 million class F at 'BBsf'; Outlook Stable;

--$16.4 million class G at 'Bsf'; Outlook Stable.

*Notional amount and interest-only.

Class A-1 has paid in full. Fitch does not rate the class H and interest-only class X-B certificates.