OREANDA-NEWS. Fitch Ratings has upgraded one class and affirmed 10 classes of Wachovia Bank Commercial Mortgage Trust (WBCMT) commercial mortgage pass-through certificates series 2005-C21. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS
The upgrade to class B reflects the increase in credit enhancement due to significant loan paydown since Fitch's last rating action. Fitch modelled losses of 31.5% of the remaining pool; expected losses on the original pool balance total 6.1%, including $62.2 million (1.9% of the original pool balance) in realized losses to date. Fitch has designated 10 loans (74.9%) as Fitch Loans of Concern, which includes eight specially serviced assets (58.4%).

As of the January 2016 distribution date, the pool's aggregate principal balance has been reduced by 87% to $430.9 million from $3.25 billion at issuance. The pool is highly concentrated with only 15 of the original 231 loans remaining in the transaction. Per the servicer reporting, there is one defeased loan (0.8%). Interest shortfalls are affecting classes H through P. The remaining non-specially serviced loans mature in August 2016 (28.8%), October 2020 (0.9%), September 2025 (0.2%), October 2030 (1.6%), and September 2035 (9.4%).

The largest loan in special servicing is the NGP Rubicon GSA Pool, the second largest loan in the pool (22.9%). The total debt exposure for the portfolio is $197.4 million split between two identical pari passu notes in the subject transaction and the WBCMT 2005-C20 transaction. The loan is currently secured by 10 office properties located across 10 states, with over 2.2 million square feet (sf) specifically built or tenanted by the General Services Administration (GSA) representing various GSA agencies. Per the servicer reporting, the portfolio was 87% leased but only 42% occupied as of September 2015. The loan went into maturity default in June 2015 and subsequently a forbearance agreement was executed with the borrower to allow additional time to market and sell the properties. The initial forbearance period ran through Dec. 31, 2015 and was further extended to Feb. 29, 2016. The largest property in the subject portfolio, a 1 million sf office building in Burlington, NJ 100% occupied by the GSA, was sold at the end of December 2015. The property will be released and net proceeds from the sale will be applied to pay down the debt. According to the servicer, the borrower is cooperating and willing to have a receiver appointed for the remaining nine properties.

The largest contributor to expected losses is the specially serviced 6116 Executive Boulevard loan (11.8% of the pool), which is a 207,055 sf office building in Rockville, MD. The collateral transferred to special servicing in January 2014 for imminent default following the November 2013 lease expirations and vacancy of the GSA, National Institute of Health (NIH) (90% of the net rentable area [NRA]). The loan had gone into payment default in July 2014. The foreclosure took place in September 2014, and became real estate owned (REO) in February 2015. According to the servicer, the property is completely vacant and there are no pending leases.

The second largest contributor to expected losses is the Metropolitan Square loan (28.8%), which is secured by a 1 million sf office tower in St. Louis, MO. The loan had previously transferred to special servicing in August 2012, and was subsequently modified in November 2012 and returned to the master servicer in March 2013. The loan has remained current under the modified terms, which included an interest rate reduction and an extension of the interest-only period and maturity date. The loans current maturity date is August 2016, with two, one-year extensions remaining. The December 2015 rent roll reported occupancy at 77%, in-line with the St. Louis Downtown submarket which Reis reports at 20.1% vacancy. The property's largest tenant is Bryan Cave LLP (23.6% NRA) whose lease expires in June 2022. Significant recent leasing activity includes a new 22-year lease with the Bi-State Development Agency (d/b/a Metro Transit) for 75,000 sf (7.5% NRA), starting in August 2015 and expiring in August 2037. Net operating income (NOI) debt service coverage ratio (DSCR) reported at 1.51x as of year-to-date September 2015, compared to 1.60x at year end (YE) 2014, 1.75x at YE 2013, and 1.05x at YE 2012..

RATING SENSITIVITIES
The Rating Outlooks on classes A-J through D are considered Stable due to sufficient credit enhancement and continued paydown. The Outlooks on classes E and F remain Negative due to concerns as to the timing and ultimate resolutions of the specially serviced loans. In addition, the Negative Outlooks reflect concerns surrounding the non-specially serviced loans including previously modified debt and single-tenant occupancy, coupled with secondary and tertiary market exposure and concentrations with only 15 loans remaining. These classes could be subjected to downward rating migration should realized losses exceed Fitch's expectation on the specially serviced assets, or performance declines on the non-specially serviced assets.

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

Fitch has upgraded the following rating:
--$65 million class B to 'AAAsf' from 'AAsf'; Outlook Stable.

Fitch has affirmed the following ratings and revised Rating Outlooks as indicated:

--$58.4 million class A-J at 'AAAsf'; Outlook Stable;
--$32.5 million class C at 'AAsf'; Outlook to Stable from Negative;
--$60.9 million class D at 'BBBsf'; Outlook to Stable from Negative;
--$36.6 million class E at 'BBsf'; Outlook Negative;
--$40.6 million class F at 'Bsf'; Outlook Negative;
--$32.5 million class G at 'CCCsf'; RE 25%;
--$40.6 million class H at 'CCsf'; RE 0%;
--$16.3 million class J at 'CCsf'; RE 0%;
--$16.3 million class K at 'Csf'; RE 0%;
--$16.3 million class L at 'Csf'; RE 0%.

The class A-1, A-2PFL, A-2C, A-3, A-PB, A-4, A-1A, and A-M certificates have paid in full. Fitch does not rate the class M, N, O and P certificates. Fitch previously withdrew the rating on the interest-only class IO certificates.