New York City–(COMPANY WIRE)– Fitch Scores has actually issued a presale report on Wells Fargo Commercial
Home mortgage Trust 2015-C31 industrial home loan pass-through certificates.
Fitch expects to rate the transaction and designate Rating Outlooks as
–$38,222,000 class A-1 AAAsf; Outlook Stable;
–$20,290,000 class A-2 AAAsf; Outlook Stable;
–$200,000,000 class A-3 AAAsf; Outlook Steady;
–$366,122,000 class A-4 AAAsf; Outlook Steady;
–$67,302,000 class A-SB AAAsf; Outlook Stable;
–$49,425,000 c class A-S AAAsf; Outlook Steady;
–$741,361,000 b class X-A AAAsf; Outlook Stable;
–$60,544,000 b class X-B AA-sf; Outlook Steady;
–$56,838,000 b class X-D BBB-sf; Outlook Stable;
–$60,544,000 c class B AA-sf; Outlook Steady;
–$46,953,000 c class C A-sf; Outlook Steady;
–$156,922,000 c class PEX A-sf; Outlook Steady;
–$366,122,000 a class A-4FL AAAsf; Outlook Stable;
–$0a class A-4FX AAAsf; Outlook Stable;
–$56,838,000 class D BBB-sf; Outlook Stable;
–$24,712,000 a class E BB-sf; Outlook Stable;
–$11,120,000 a class F B-sf; Outlook Stable.
(a) Privately positioned and pursuant to Guideline 144A.
(b) Notional amount and interest-only.
(c) Class A-S, B and C certificates may be exchanged for class PEX
certificates, and class PEX certificates might be exchanged for class A-S,.
B, and C certificates.
The expected scores are based on information offered by the issuer as.
of October 15, 2015. Fitch does not expect to rank the $46,953,380 class.
The certificates represent the beneficial ownership interest in the.
trust, primary assets of which are 102 loans secured by 118 commercial.
buildings having an aggregate principal balance of approximately $988.4.
million as of the cut-off date. The loans were added to the trust.
by Liberty Island Group I LLC, Rialto Home mortgage Financing, LLC, Wells Fargo.
Bank, NA, C-III Commercial Home mortgage LLC, Societe Generale and Basis.
Realty Capital II, LLC.
Fitch reviewed a thorough sample of the deals collateral,.
including site examinations on 60.7 % of the homes by balance, cash.
flow analysis of 72.2 %, and asset summary reviews on 73.5 % of the swimming pool.
SECRET RATING DRIVERS.
High Fitch Take advantage of: The pool demonstrates high leverage statistics with.
a Fitch DSCR and LTV of 1.12 x and 112.9 %, respectively. Leaving out the.
credit-assessed 11 Madison Opportunity (3.1 % of swimming pool), the Fitch DSCR and LTV.
are 1.11 x and 114.6 %, respectively.
Pool Diversity: The leading 10 loans represent 37.4 % of the pool by balance.
This is well below the year-to-date 2015 average of 48.5 % and the 2014.
average of 50.5 %. The swimming pool LCI was 229, which is below both the.
year-to-date 2015 and 2014 averages of 354 and 387, respectively. There.
was no substantial sponsor concentration, with an SCI rating of 237. The.
year-to-date 2015 and 2014 SCI averages were 391 and 419, respectively.
Credit Viewpoint Loan: One loan, 11 Madison Avenue (3.1 % of the swimming pool), has.
an investment-grade credit viewpoint of A- on a stand-alone basis.
Omitting the 11 Madison Opportunity loan, Fitchs indicated channel.
subordination at the junior AAAsf tranche is around 25.8 % and.
BBB-sf is roughly 8.6 %.
RATING LEVEL OF SENSITIVITIES.
For this transaction, Fitchs NCF was 13.7 % below the most recent years.
NOI (for buildings for which a full year NOI was provided, omitting.
buildings that were stabilizing during this period). Unexpected.
more declines in property-level NCF might lead to higher defaults.
and loss severities on defaulted loans, and could result in capacity.
rating actions on the certificates.
Fitch evaluated the level of sensitivities of the ratings designated to WFCM.
2015-C31 certificates and found that the transaction displays average.
sensitivity to further decreases in NCF. In a scenario where NCF.
declined an additional 20 % from Fitchs NCF, a downgrade of the senior.
AAAsf certificates to A-sf might result. In a more serious scenario,.
in which NCF declined a further 30 % from Fitchs NCF, a downgrade of the.
senior AAAsf certificates to BBB-sf could result. The presale report.
consists of a detailed explanation of additional tensions and level of sensitivities.
on pages 10 – 11.
DUE DILIGENCE USAGE.
Fitch was provided with third-party due diligence info from.
Deloitte amp; Touche LLP. The third-party due diligence info was.
provided on Type ABS Due Diligence-15E and focused on a comparison and.
re-computation of particular attributes with regard to each of the.
102 home mortgagemortgage. Fitch considered this info in its analysis.
and the findings did not have an effectan effect on the analysis. A copy of the.
ABS Charge Diligence Form-15E gotten by Fitch in cable with this.
deal may be acquired through the link contained on the bottom of.
the relevant score action commentary.
Extra information is readily available at www.fitchratings.com.
Wells Fargo Commercial Mortgage Trust 2015-C31.
Criteria for Examining Multiborrower United States and Canadian Commercial.
Home mortgage Deals (bar. 28 May 2015).
Worldwide Structured Finance Score Criteria (bar. 06 Jul 2015).
Dodd-Frank Score Information Disclosure Type.
ABS Charge Diligence Type 15E 1.
ABS Due Diligence Form 15E 2.
ALL FITCH CREDIT RATINGS GO THROUGH SPECIFIC RESTRICTIONS AND.
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING.
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
OFFERED ON THE AGENCYS PUBLIC WEBSITE WWW.FITCHRATINGS.COM.
RELEASED SCORES, CRITERIA AND METHODOLOGIES ARE OFFERED FROM THIS.
WEBSITE AT ALL TIMES. FITCHS CODE OF CONDUCT, PRIVACY, CONFLICTS.
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER PERTINENT POLICIES.
AND TREATMENTS ARE ALSO READILY AVAILABLE FROM THE CODE OF CONDUCT SECTION OF.
THIS SITE. FITCH MAY HAVE OFFERED ANOTHER PERMISSIBLE SERVICE TO THE.
RANKED ENTITY OR ITS RELATED THIRD PARTIES. INFORMATION OF THIS SERVICE FOR.
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY.
CAN BE BASE ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH.