Fitch Ratings and Kroll Bond Ratings will rate the $1.1 billion CMBS conduit deal backed by 61 fixed-rate commercial mortgage loans that are secured by 80 properties.
The Wells Fargo and Royal Bank of Scotland conduit called WFRBS Commercial Mortgage Trust 2012-C7 has structured super-senior ‘AAAsf’ classes at 30% credit enhancement and a subordinate ‘AAAsf’ rated class A-S with 22.5% credit enhancement, said a Fitch presale report on the deal.
Retail CRE mortgages represents 57.3% of the pool of loans. Four of the top 10 loans, representing 38% of the pool, are malls located across various U.S. states including California, Georgia, Kentucky and Michigan. Two malls, totaling 22.4% of the pool, are sponsored by General Growth Properties while one (11.8%) is sponsored Simon Property Group.
The top five loans, according to Kroll, are Northridge Fashion Center (14.3%), The Town Center at Cobb (11.8%), Florence Mall (8.2%), Hutchinson Metro Center – Tower 1 (6.2%), and Puente Hills East (5.9%), represent 46.2% of the initial pool balance, while the top ten loans represent 62.6%.
Fitch said in its report that 17.9% of the pool has been assigned a property quality grade of “B-” or worse. Four properties within the top 15 loans received a property quality of “B+.”