Wednesday, August 22, 2007

Fitch Upgrades Wachovia Bank Commercial Mortgage Trust

Fitch has upgraded Wachovia Bank Commercial Mortgage Trust, Series 2005-WHALE 5, commercial mortgage pass-through certificates, as follows: -- $7.9 million class J to 'AAA' from 'BBB+'; -- $11.3 million class K to 'AA+' from 'BBB'; -- $10.8 million class L to 'BBB+' from 'BBB-'. In addition, Fitch affirms the following classes: -- Interest-only class X-1B at 'AAA'; -- Interest-only class X-2 at 'AAA'. Classes A-1, A-2, X-1A, X-3, X-4, X-KHP1, X-KHP2, B, C, D, E, F, G, H, KHP-1, KHP-2, KHP-3, KHP-4, KHP-5, OKS, DP-1, DP-2, DP-3, and MS, and AG have been paid in full.

The upgrades are due to increased credit enhancement resulting from the repayment of two loans, Gallery at Fulton and the New Mexico Mall, since Fitch's last rating action in March 2007. As of the August 2007 distribution date, the pool's collateral balance has declined 97.7% to $30 million from $1.29 billion at issuance. Of the original 14 loans in the transaction, only the Lightstone Pool 2 remains. Fitch reviewed the servicer provided year-end (YE) 2006 operating statement analysis report for the Lightstone Pool 2 loan. Based on the loan's overall improved performance since issuance, due to repositioning efforts at both malls and renovations at the Brazos Mall, the loan maintains its investment grade credit assessment.

Five Stars Mortgage providing Apartment Building Commercial Loans throughout Florida and Nationwide today. All Florida No Doc Commercial Loans are underwritten with causion.

The YE 2006 Fitch stressed A-note debt service coverage ratio (DSCR) has improved to 2.15 times (x) from 1.53x at issuance. The loan matured on January 9, 2007 and is currently in the first of its three one-year extension options. At the time of maturity, the Brazos Mall was still undergoing renovations and both malls continue to be repositioned within their markets. The Lightstone Pool 2 loan (100%) is secured by two regional malls: the Shawnee Mall in Shawnee, OK, and the Brazos Mall in Jackson, TX. The Shawnee Mall is anchored by Sears and the Brazos Mall is anchored by JC Penney's and Sears. As of May 2007, occupancy at the Shawnee Mall is slightly down to 56% from 65% at YE 2006, but remains stable compared to 57% at issuance. As of May 2007, occupancy at the Brazos Mall has improved to 83% from 79% at YE 2006 and 73% at issuance. Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

No comments: