Fitch Affirms WBCMT 2007-C30
KEY RATING DRIVERS
The affirmations reflect stable performance of the remaining pool. Fitch modeled losses of 16.8% of the remaining pool; expected losses on the original pool balance total 15.9%, including \$120.1 million (1.5% of the original pool balance) in realized losses to date. Fitch has designated 60 Fitch Loans of Concern (42.7%), which includes 23 specially serviced assets (33%).
As of the February 2015 distribution date, the pool's aggregate principal balance has been reduced by 14.4% to \$6.76 billion from \$7.9 billion at issuance. Per the servicer reporting, four loans (0.5% of the pool) are defeased. Interest shortfalls are currently affecting classes A-J through S.
The largest contributor to expected losses remains the Peter Cooper Village Stuyvesant Town asset (PCV/ST) (22.2% of the pool). The asset, which became real estate owned (REO) in June 2014, was subject to a suit brought by subordinate mezzanine lenders in July 2014. The suit alleged that the deed in lieu transaction breached provisions of the Intercreditor Agreement causing the plaintiffs to suffer damages. The special servicer has recently filed a motion to dismiss the Plaintiff's amended complaint and litigation is still ongoing. Since the prior review total exposure has increased by \$165 million due to all the pending litigation, including insurance claims and The Roberts Litigation. Property restoration efforts from the results of Hurricane Sandy are nearly completed and the special servicer continues to pursue the remaining claim amounts from the insurance providers. In April 2013, final approval was received for the settlement to The Roberts Litigation to address historical overcharges and future rents for over 4,300 units and implementation is nearly complete. The special servicer reports that as of year-end 2014, the property was 98% leased with a net operating income (NOI) debt service coverage ratio (DSCR) of 1.02x, up from an NOI DSCR of 0.92x at year-end 2013.
The next largest contributor to expected losses is the specially-serviced Four Seasons Aviara Resort - Carlsbad, CA loan (2.8%), which is secured by a resort hotel with 329 rooms and an Arnold Palmer designed 18-hole golf course. The property is now known as the Park Hyatt Aviara. The loan transferred to the special servicer in April 2013 for a second time due to monetary default after originally being modified and returned to the master servicer in May 2011. The loan modification included a maturity extension from February 2012 to February 2017, additional reserves, and a reduction in interest rate to 2% for the first year, 2.75% for the second year, 4.50% for the third year, and a coupon rate of 5.94% thereafter. Hyatt has submitted an extensive six-year capital plan for several million dollars of upgrades and replacements that is under review. According to the servicer, disposition options continue to be evaluated.
The third largest contributor to expected losses is the Bank One Center loan (2.6%), which is secured by 1,530,957 square foot(sf), 60-story office building in the Dallas, Texas CBD. The loan was previously with the special servicer before being returned to the master servicer in December 2013. While at the special servicer the loan was assumed by M-M Properties Inc. and CBRE Global Investors and was modified. The loan modification included a bifurcation into an A-note (\$143.5 million) and B-note (\$33.7 million), maturity extension from January 2017 to January 2020, additional reserves, the A-note is interest only until maturity, with a reduction in the interest rate to 4.5% for the first four years, and a coupon rate of 5.767% thereafter. The servicer reports a year-end 2014 NOI DSCR of 1.18x and a January 2015 occupancy of 64%. Additionally, the reported NOI decreased by 25% from year-end 2013 to year-end 2014 due to reporting format discrepancies between the new borrower and the original borrower.
RATING SENSITIVITIES
The Rating Outlooks on classes A-3 through A-MFL remain Stable. Should losses be significantly lower than expected, including losses on the PCV/ST, future upgrades to the A-M classes are possible, conversely should workouts on the larger specially serviced assets be prolonged with increasing total loan exposures, downgrades are possible. Downgrades to the distressed classes (below 'B') are likely as additional losses are realized.
Fitch affirms the following classes and assigns REs as indicated:
--\$231.8 million class A-3 at 'AAAsf'; Outlook Stable;
--\$195.5 million class A-4 at 'AAAsf'; Outlook Stable;
--\$49.3 million class A-PB at 'AAAsf'; Outlook Stable;
--\$1.9 billion class A-5 at 'AAAsf'; Outlook Stable;
--\$2.2 billion class A-1A at 'AAAsf'; Outlook Stable;
--\$540.3 million class A-M at 'BBB-sf'; Outlook Stable;
--\$250 million class A-MFL at 'BBB-sf'; Outlook Stable;
--\$671.8 million class A-J at 'CCCsf'; RE 50%;
--\$49.4 million class B at 'CCCsf'; RE 0%;
--\$79 million class C at 'CCCsf'; RE 0%;
--\$69.2 million class D at 'CCsf'; RE 0%;
--\$59.3 million class E at 'CCsf'; RE 0%;
--\$69.2 million class F at 'CCsf'; RE 0%;
--\$98.8 million class G at 'CCsf'; RE 0%;
--\$79 million class H at 'CCsf'; RE 0%;
--\$88.9 million class J at 'CCsf'; RE 0%;
--\$79 million class K at 'Csf'; RE 0%.
The class A-1 and A-2 certificates have paid in full. Fitch does not rate the class L, M, N, O, P, Q and S certificates. Fitch previously withdrew the ratings on the interest-only class X-P, X-C and X-W certificates.
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