OREANDA-NEWS. Fitch Ratings has affirmed all classes of Wells Fargo Bank, N.A. (WFRBS) Commercial Mortgage Trust series 2011-C3. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are based on the stable performance since last review of the underlying collateral in the pool. Fitch modeled losses of 2.3% of the remaining pool; expected losses on the original pool balance total 1.8%, including $433,804 (0.03% of the original pool balance) in realized losses to date. Fitch has designated three loans (2.3% of the current balance) as Fitch Loans of Concern, which includes two specially serviced assets (1.4%).

As of the January 2016 distribution date, the pool's aggregate principal balance has been reduced by 23.3% to $1.11 billion from $1.45 billion at issuance. Per the servicer reporting, three loans (3.4%) are defeased. Interest shortfalls are currently affecting class G.

The largest contributor to modeled losses is a specially-serviced loan secured by a 481 unit multifamily property. The property, located in Laramie, WY, caters to students at the University of Wyoming. The loan was transferred to the special servicer in December 2013 due to the borrower filing Chapter 11 bankruptcy. Since that time the loan has been modified with the borrower funding one million dollars for a debt service reserve, a capital improvement reserve, legal fees and advances. At this time, however, the borrower and guarantor have still not provided audited financials for 2014, which is a breach of the aforementioned modification. The lender is now in discussions with the obligors regarding a second modification that would seek to remedy all previous events of default. The loan remains current.

The next largest contributor to modeled losses is from a non-specially serviced loan secured by 52,797 square foot (sf) retail center located in Walnut Creek, CA. Tenants include Office Max (48% of GLA), Western Stone & Metal (16%) and Casa Belicoso Inc. (6%). The retail center experienced a drop in occupancy, falling to 70% as of year-end (YE) 2014 from 96% as of YE 2013. The servicer reported a net operating income (NOI) debt service coverage ratio (DSCR) of 0.85x for the property as of September 2015.

The third largest contributor to modeled losses is the Trinity Centre II loan, which is secured by a 151,492 sf office building in Centreville, VA. Vacancy increased at the property after the second largest tenant departed upon their lease expiration in June 2015. Previously, occupancy was 94% at year-end 2014. As of September 2015, the property had a physical occupancy of 77% and an economic occupancy of just 60%, as a large tenant continues to enjoy a free rent period offered as a condition of their lease renewal. The NOI DSCR dropped to 1.12x as of September 2015 from 1.51x as of YE 2014. The rent concessions are scheduled to burn off in August 2016, at which time the property should experience an increase in revenue. The vacant space continues to be marketed by the borrower.

RATING SENSITIVITIES

The Rating Outlooks on classes A-2 through A-4, as well as classes C through F, are Stable due to increasing credit enhancement and overall stable collateral performance. A Rating Outlook Positive has been assigned for Class B as a result of continued paydown, defeasance, the pool's low leverage, and minimal realized losses to date. Further upgrades were not warranted given the concentration of loans secured by retail properties in the pool which represent 53.2% of the current balance.

DUE DILIGENCE USAGE

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

Fitch affirms the following classes as indicated:

--$79.5 million class A-2 at 'AAAsf'; Outlook Stable;
--$123.5 million class A-3 at 'AAAsf'; Outlook Stable;
--$102 million class A-3FL at 'AAAsf'; Outlook Stable;
--$557 million class A-4 at 'AAAsf'; Outlook Stable;
--$862 million* class X-A at 'AAAsf'; Outlook Stable;
--$41.6 million class B at 'AAsf'; Outlook to Positive from Stable;
--$47 million class C at 'Asf'; Outlook Stable;
--$79.5 million class D at 'BBB-sf'; Outlook Stable;
--$21.7 million class E at 'BBsf'; Outlook Stable;
--$19.9 million class F at 'Bsf'; Outlook Stable.

*Notional amount and interest-only

The class A-1 certificates have paid in full. Fitch does not rate the class G and X-B certificates.