OREANDA-NEWS. September 28, 2015. Fitch Ratings has upgraded Windermere X CMBS Ltd's class C notes and affirmed the class A, B, D and E floating-rate notes due 2019 as follows:

EUR206.6m Class A (XS0293895271) affirmed at 'BBBsf'; Outlook Stable
EUR51.9m Class B (XS0293896915) affirmed at 'BBB-sf'; Outlook revised to Stable from Negative
EUR59.3m Class C (XS0293897137) upgraded to 'BBB-sf' from 'BBsf'; Outlook Stable
EUR104.1m Class D (XS0293898457) affirmed at 'Dsf' Recovery Estimate (RE) RE changed to 50% from 30%
EUR9.1m Class E (XS0293898887) affirmed at 'Dsf'; RE 0%

KEY RATING DRIVERS
Since Fitch's last rating action, the transaction has benefited from the repayment in full of the EUR257m Tour Esplanade loan at the July 2015 interest payment date (IPD). The upgrade of the class C notes and the revised RE on the class D notes reflects the better than expected recoveries of the Bridge loan (74% of the pool). The affirmation of the class A and B notes is driven by their expected repayment in full following the sale of five of the six Bridge borrowers for EUR266.9m.

Upon completion of the disposal, the Bridge loan will be secured by one office property in Eschborn fully let to Vodafone (BBB+/Stable) on a lease expiring in September 2017. The tenant has already expressed its intention to vacate the property, therefore a disposal of the asset is likely to be challenging. However, in its most recent investor report, HPI, the special servicer, reports that the property has been earmarked by an interested investor.

The Fortezza loan (22% of the pool) remains outstanding. Since our last rating action, attempts to sell some of the assets have been unsuccessful. Following the borrower's failure to comply with the April 2015 debt target, negotiations are ongoing to reach a restructuring proposal of the IFB & Pavia facility. As a result the loan is subject to a waiver agreement until 30 September 2015. For the Naples Enel tower facility, the special servicer's strategy is to regear the lease prior to a sale of the asset. Fitch expects the loan to enter a protracted workout and as a result suffer heavy losses. The collateral backing the Built and the Tresforte loans has been sold. The loans' balances are expected to be fully written off at the upcoming IPDs.

RATING SENSITIVITIES
A protracted workout of the remaining loans could lead to a lower Recovery Estimate on the class D notes.

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

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Fitch did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable.

Overall and together with the assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
The information below was used in the analysis.
- Loan-by-loan data provided by HPI as at July 2015 IPD
- Transaction reporting provided by HPI as at July 2015 IPD