OREANDA-NEWS. Fitch Ratings has issued a presale report on Wells Fargo Commercial Mortgage Trust 2015-C29 commercial mortgage pass-through certificates.

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

--\$50,145,000 class A-1 'AAAsf'; Outlook Stable;
--\$30,508,000 class A-2 'AAAsf'; Outlook Stable;
--\$250,000,000 class A-3 'AAAsf'; Outlook Stable;
--\$396,065,000 class A-4 'AAAsf'; Outlook Stable;
--\$97,199,000 class A-SB 'AAAsf'; Outlook Stable;
--\$88,277,000c class A-S 'AAAsf'; Outlook Stable;
--\$912,194,000b class X-A 'AAAsf'; Outlook Stable;
--\$70,621,000c class B 'AA-sf'; Outlook Stable;
--\$50,024,000c class C 'A-sf'; Outlook Stable;
--\$208,922,000c class PEX 'A-sf'; Outlook Stable;
--\$58,851,000 class D 'BBB-sf'; Outlook Stable;
--\$396,065,000a class A-4FL 'AAAsf'; Outlook Stable;
--\$0a class A-4FX 'AAAsf'; Outlook Stable;
--\$23,541,000a class E 'BBsf'; Outlook Stable;
--\$11,770,000a class F 'Bsf'; Outlook Stable.

(a) Privately placed and pursuant to Rule 144A.
(b) Notional amount and interest-only.
(c) Class A-S, class B, and class C certificates may be exchanged for class PEX certificates, and class PEX certificates may be exchanged for class A-S, class B, and class C certificates.

The expected ratings are based on information provided by the issuer as of June 4, 2015. Fitch does not expect to rate the \$120,645,000 interest-only class X-B or the \$50,024,121 class G.

The certificates represent the beneficial ownership interest in the trust, primary assets of which are 133 loans secured by 151 commercial properties having an aggregate principal balance of approximately \$1.177 billion as of the cut-off date. The loans were contributed to the trust by Wells Fargo Bank, National Association, Rialto Mortgage Finance, LLC, Silverpeak Real Estate Finance LLC, Walker & Dunlop Commercial Property Funding I WF, LLC and National Cooperative Bank, N.A.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 68.7% of the properties by balance, cash flow analysis of 69.7%, and asset summary reviews on 69.7% of the pool.

KEY RATING DRIVERS
High Fitch Leverage: The pool's Fitch debt service coverage ratio (DSCR) and loan to value (LTV) are 1.37x and 107%, respectively. However, excluding co-op collateral, the pool's Fitch DSCR and LTV are 1.12x and 111.8%, respectively. This is higher than other recent Fitch-rated transactions. The 2014 and year-to-date (YTD) 2015 average Fitch LTVs were 106.2% and 110.4%, respectively. The 2014 and YTD 2015 average Fitch DSCRs were 1.19x and 1.18x, respectively.

Pool Diversity: The top 10 loans represent only 32.6% of the pool by balance. This is below the YTD 2015 average of 47.8% and the 2014 average of 50.5%. The pool's LCI was 202, which is below both the YTD 2015 and 2014 averages of 340 and 387, respectively. There was no significant sponsor concentration, with an SCI score of 212. The YTD 2015 and 2014 SCI averages were 393 and 419, respectively.

Property Type Diversity: The largest property type concentrations are multifamily (28.8%), retail (26.7%) and office (25.1%). Multifamily has a below average probability of default in Fitch's multiborrower CMBS model. Retail and office have an average probability of default. The pool's hotel concentration is only 4.9%, which is below the YTD 2015 and 2014 averages of 16.6% and 14.2%; hotels have the highest probability of default in Fitch's multiborrower CMBS model.

RATING SENSITIVITIES
For this transaction, Fitch's net cash flow (NCF) was 14.5% below the most recent net operating income (NOI; for properties for which a recent NOI was provided, excluding properties that were stabilizing during this period). Unanticipated further declines in property-level NCF could result in higher defaults and loss severities on defaulted loans, and could result in potential rating actions on the certificates.

Fitch evaluated the sensitivity of the ratings assigned to WFCM 2015-C29 certificates and found that the transaction displays average sensitivity to further declines in NCF. In a scenario in which NCF declined a further 20% from Fitch's NCF, a downgrade of the senior 'AAAsf' certificates to 'A-sf' could result. In a more severe scenario, in which NCF declined a further 30% from Fitch's NCF, a downgrade of the senior 'AAAsf' certificates to 'BBB-sf' could result. The presale report includes a detailed explanation of additional stresses and sensitivities on pages 10 - 11

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