OREANDA-NEWS. Fitch Ratings has upgraded three classes of Wachovia Bank Commercial Mortgage Trust, commercial mortgage pass-through certificates, series 2005-C19 (WBCMT 2005-C19). A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS
The upgrades reflect increased credit enhancement, as a result of paydowns, defeasance, and better recoveries than previously modeled on loans disposed since Fitch's last rating action.

Since Fitch's last rating action, the transaction has paid down by $654 million and no realized losses were incurred. Since issuance, realized losses for the transaction have been minimal, totaling 1.5% of the original pool balance.

As of the October 2015 distribution date, the pool's aggregate principal balance has been reduced by 99.4% to $9.6 million from $1.61 billion at issuance. Cumulative interest shortfalls totaling $0.8 million are currently impacting classes O and P. The remaining collateral pool is concentrated with only three loans. One loan, which comprises 30.3% of the current pool, is defeased. This defeased loan has a maturity in June 2020.

The other two loans, Kmart Center and Kmart Plaza (combined for 69.7% of current pool), are currently in special servicing and have the same sponsor. These loans transferred to special servicing in June 2015 for maturity default; the loans matured on June 11, 2015.

The Kmart Center is a 150,484 square foot (sf) retail center located in Neptune Beach, FL, 15 miles east of Jacksonville, FL. The property is anchored by Kmart, which occupies 59% of the total property sf, and has a lease that expires in November 2017. The third largest tenant, Beall's Outlet (7.2% of total sf), recently exercised its third five-year option extending its lease to April 2020. Property occupancy had previously dropped to 68% from 92% when the second largest tenant, ACE Hardware, vacated at its May 2015 lease expiration. The borrower recently signed a lease with a local grocer tenant to fill this space, which would boost occupancy back to 92%. The tenant has not commenced build-out or taken occupancy yet.

The Kmart Plaza is a 108,960 sf retail center located in Warminster, PA, 45 miles north of Philadelphia, PA. The property is currently vacant, largely due to Kmart (98% of total sf) vacating the property in 2013. The property is currently under contract for sale.

The special servicer has indicated a forbearance agreement with the borrower on these two loans has been executed. The forbearance agreement has an initial nine month term from the loan's maturity through March 31, 2016 and includes an option to enter into an additional nine month forbearance term through Dec. 31, 2016. The borrower pays down 5% of the outstanding principal balance and remits a 1% forbearance fee to the special servicer in exchange for each of the forbearance terms.

RATING SENSITIVITIES
The Stable Rating Outlooks on classes M and N reflect increased credit enhancement and expected continued paydown. Upgrades to classes N and O were limited should the sale of the Kmart Plaza property fall through. Further upgrades are possible as the remaining non-defeased loans are resolved and disposed. Downgrades are not likely unless the sale of the property does not occur and a prolonged workout occurs.

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

Fitch has upgraded and assigned Rating Outlooks to the following classes as indicated:

--$3.1 million class M to 'AAAsf' from 'CCCsf'; assign Outlook Stable;
--$2 million class N to 'BBsf' from 'CCCsf'; assign Outlook Stable;
--$4 million class O to 'CCCsf' from 'Csf'; RE 100%.

The class A-1, A-2, A-3, A-4, A-5, A-PB, A-6, A-1A, A-FL, A-M, A-J, B, C, D, E, F, G, H, J, K, and L certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the ratings on the interest-only class X-P and X-C certificates.