OREANDA-NEWS. Fitch Ratings has affirmed 12 classes of WaMu Commercial Mortgage Securities Trust 2006-SL1, small balance commercial mortgage pass-through certificates (WAMU 2006-SL1). A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are the result of sufficient credit enhancement to the classes due to scheduled amortization and continued paydown. Fitch modeled losses of 11.8% of the remaining pool; expected losses on the original pool balance total 8.8%, including \$21.8 million (4.3% of the original pool balance) in realized losses to date. Fitch has designated 78 loans (40.9%) as Fitch Loans of Concern, which includes seven specially serviced assets (7.2%).

As of the April 2015 distribution date, the pool's aggregate principal balance has been reduced by 61.2% to \$198.2 million from \$511.4 million at issuance. No loans are defeased. Interest shortfalls are currently affecting classes F through N.

The largest contributor to modeled losses is a loan (1.8% of pool) secured by a 169-unit multifamily property located in Chicago, IL. The loan transferred to special servicing in February 2011 due to delinquent tax payments. In April 2011, the special servicer filed a foreclosure motion and litigation remains ongoing. Negotiations for a discounted payoff were unsuccessful the servicer is proceeding with foreclosure. Occupancy has significantly dropped with a reported occupancy of 45% as of August 2014, compared to 2012 when the property was 85% occupied. Since 2012, the property has reported a negative net operating income (NOI).

The next largest contributor to modeled losses is a loan (2.2%) secured by a 96-unit multifamily property located in Homewood, IL. The loan transferred to special servicing in January 2010 for delinquent tax payments. In January 2011, the special servicer filed a foreclosure motion and litigation remains ongoing. The borrower has presented an offer for a discounted payoff which is being reviewed by the special servicer while continuing to pursue foreclosure. As of October 2014, the property was 94% occupied with a NOI debt service coverage ratio of 1.46x.

RATING SENSITIVITIES

The Rating Outlooks on classes A1A and B remain Stable due to increasing credit enhancement and continued paydown. Upgrades to these classes are limited due to the small balance nature of the collateral pool and the lack of updated operating performance on many of the loans. Upgrades to these classes could occur if updated financials are received and reflect improved collateral performance or if large specially serviced loans are resolved at losses lower than anticipated. Further downgrades to classes C through F are possible as losses are realized or if additional loans become specially serviced.

Fitch affirms the following classes and assigns REs as indicated:

--\$147.2 million class A1A at 'Asf'; Outlook Stable;
--\$10.2 million class B at 'BBsf'; Outlook Stable;
--\$14.7 million class C at 'CCCsf'; RE 100%;
--\$10.2 million class D at 'CCsf'; RE 20%;
--\$7 million class E at 'CCsf'; RE 0%;
--\$3.8 million class F at 'Csf'; RE 0%;
--\$5.1 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%.

The class A certificate has paid in full. Fitch does not rate the class N certificates. Fitch previously withdrew the rating on the interest-only class X certificate.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports.