Fitch Affirms WBCMT 2003-C9
KEY RATING DRIVERS
The affirmations of the distressed ratings indicate minimal changes in expected losses since the last rating action. Losses to class F continue to be considered inevitable and losses on the remaining classes have already been incurred.
There are nine loans remaining in the pool, the three largest of which are specially serviced assets. Fitch modeled losses of 66.3% of the remaining pool; expected losses on the original pool balance total 7.8%, including $79.6 million (6.9% of the original pool balance) in realized losses to date. As of the July 2016 distribution date, the pool's aggregate principal balance has been reduced by 98.7% to $15.3 million from $1.15 billion at issuance. Interest shortfalls are currently affecting classes F through P.
The largest specially serviced asset c is the Southwest Commons Shopping Center (39.5% of the pool), an 84,983 square foot (sf) retail center located in Worcester, MA, approximately 45 miles west of Boston. The loan transferred to special servicing in February 2012 due to imminent default after the grocery anchor vacated and became real estate owned (REO) in February 2013. The property recently sold at auction and the closing is scheduled for the first week of September 2016. As of June 2016, occupancy was 35%.
The second largest loan is the specially-serviced Swan Creek MHC loan (22.3%), which is secured by a 201 pad mobile home community located in New Boston, MI, approximately 27 miles southwest of Detroit. The loan has been in special servicing since December 2013 for maturity default. The servicer reports that the property is 49% occupied. The loan is categorized as non-performing matured and foreclosure is expected.
The third largest asset is the South Shades Crest Station (14.5%), a 25,500 sf shadow anchored retail center located in Hoover, AL. The loan transferred to special servicing in December 2013 for maturity default. The loan became REO in November 2014. The special servicer reports the property was 69% occupied as of June 2016.
RATING SENSITIVITIES
Class F is expected to remain at 'Csf' due to the expectation of losses. Once losses are incurred the class will be downgraded to 'D.' The remaining classes have all experienced principal losses and are rated 'Dsf'.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
Fitch has affirmed the following ratings and revises RE as indicated:
--$11.6 million class F at 'Csf'; RE 45%.
--$3.7 million class G at 'Dsf'; RE 0%;
--$0 class H at 'Dsf'; RE 0%;
--$0 class J at 'Dsf'; RE 0%;
--$0 class K at 'Dsf'; RE 0%;
--$0 class L at 'Dsf'; RE 0%;
--$0 class M at 'Dsf'; RE 0%;
--$0 class N at 'Dsf'; RE 0%;
--$0 class O at 'Dsf'; RE 0%.
The class A-1, A-2, A-3, A-4, B, C, D, E and X-P certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the rating on the interest-only class X-C certificates.
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