Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Enter the above code here:
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Rating Action:

Moody's Affirms 21 Classes of WBCMT 2007-C33

Global Credit Research - 13 Jun 2014

Approximately $2.52 Billion of Structured Securities Affected

New York, June 13, 2014 -- Moody's Investors Service (Moody's) has affirmed the ratings of 21 classes of Wachovia Bank Commercial Mortgage Trust Pass-Through Certificates, Series 2007-C33 as follows:

Cl. A-1A, Affirmed Aaa (sf); previously on Jun 28, 2013 Affirmed Aaa (sf)

Cl. A-4, Affirmed Aaa (sf); previously on Jun 28, 2013 Affirmed Aaa (sf)

Cl. A-5, Affirmed Aaa (sf); previously on Jun 28, 2013 Affirmed Aaa (sf)

Cl. A-PB, Affirmed Aaa (sf); previously on Jun 28, 2013 Affirmed Aaa (sf)

Cl. A-M, Affirmed A3 (sf); previously on Jun 28, 2013 Affirmed A3 (sf)

Cl. A-J, Affirmed Ba2 (sf); previously on Jun 28, 2013 Affirmed Ba2 (sf)

Cl. B, Affirmed Caa1 (sf); previously on Jun 28, 2013 Affirmed Caa1 (sf)

Cl. C, Affirmed Caa3 (sf); previously on Jun 28, 2013 Affirmed Caa3 (sf)

Cl. D, Affirmed Ca (sf); previously on Jun 28, 2013 Affirmed Ca (sf)

Cl. E, Affirmed Ca (sf); previously on Jun 28, 2013 Affirmed Ca (sf)

Cl. F, Affirmed C (sf); previously on Jun 28, 2013 Affirmed C (sf)

Cl. G, Affirmed C (sf); previously on Jun 28, 2013 Affirmed C (sf)

Cl. H, Affirmed C (sf); previously on Jun 28, 2013 Affirmed C (sf)

Cl. J, Affirmed C (sf); previously on Jun 28, 2013 Affirmed C (sf)

Cl. K, Affirmed C (sf); previously on Jun 28, 2013 Affirmed C (sf)

Cl. L, Affirmed C (sf); previously on Jun 28, 2013 Affirmed C (sf)

Cl. M, Affirmed C (sf); previously on Jun 28, 2013 Affirmed C (sf)

Cl. N, Affirmed C (sf); previously on Jun 28, 2013 Affirmed C (sf)

Cl. O, Affirmed C (sf); previously on Jun 28, 2013 Affirmed C (sf)

Cl. P, Affirmed C (sf); previously on Jun 28, 2013 Affirmed C (sf)

Cl. IO, Affirmed Ba3 (sf); previously on Jun 28, 2013 Affirmed Ba3 (sf)

RATINGS RATIONALE

The ratings on the P&I classes A-PB through A-J were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges.

The ratings on the P&I classes B through P were affirmed because the ratings are consistent with Moody's expected loss.

The rating on the IO class was affirmed because the credit performance (or the weighted average rating factor or WARF) of the referenced classes are consistent with Moody's expectations.

Moody's rating action reflects a base expected loss of 14.4% of the current balance compared to 13.0% at Moody's last review. Moody's base expected loss plus realized losses is now 12.2% of the original pooled balance, compared to 12.8% at the last review. Moody's provides a current list of base expected losses for conduit and fusion CMBS transactions on moodys.com at http://v3.moodys.com/viewresearchdoc.aspx?docid=PBS_SF215255.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING:

The performance expectations for a given variable indicate Moody's forward-looking view of the likely range of performance over the medium term. Performance that falls outside the given range can indicate that the collateral's credit quality is stronger or weaker than Moody's had previously expected.

Factors that could lead to an upgrade of the ratings include a significant amount of loan paydowns or amortization, an increase in the pool's share of defeasance or an improvement in pool performance.

Factors that could lead to a downgrade of the ratings include a decline in the performance of the pool, loan concentration, an increase in realized and expected losses from specially serviced and troubled loans or interest shortfalls.

METHODOLOGY UNDERLYING THE RATING ACTION

The principal methodology used in this rating was "Moody's Approach to Rating Fusion U.S. CMBS Transactions" published in April 2005. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

DESCRIPTION OF MODELS USED

Moody's review used the excel-based CMBS Conduit Model v 2.64, which it uses for both conduit and fusion transactions. Conduit model results at the Aa2 (sf) level are driven by property type, Moody's actual and stressed DSCR, and Moody's property quality grade (which reflects the capitalization rate Moody's uses to estimate Moody's value). Conduit model results at the B2 (sf) level are based on a paydown analysis using the individual loan-level Moody's LTV ratio. Moody's may consider other concentrations and correlations in its analysis. Based on the model pooled credit enhancement levels of Aa2 (sf) and B2 (sf), the required credit enhancement on the remaining conduit classes are either interpolated between these two data points or determined based on a multiple or ratio of either of these two data points. For fusion deals, Moody's merges the credit enhancement for loans with investment-grade structured credit assessments with the conduit model credit enhancement for an overall model result. Moody's incorporates negative pooling (adding credit enhancement at the structured credit assessment level) for loans with similar structured credit assessments in the same transaction.

Moody's uses a variation of Herf to measure the diversity of loan sizes, where a higher number represents greater diversity. Loan concentration has an important bearing on potential rating volatility, including the risk of multiple notch downgrades under adverse circumstances. The credit neutral Herf score is 40. The pool has a Herf of 25, compared to 26 at Moody's last review.

DEAL PERFORMANCE

As of the May 16, 2014 distribution date, the transaction's aggregate certificate balance has decreased by 30% to $2.52 billion from $3.60 billion at securitization. The certificates are collateralized by 135 mortgage loans ranging in size from less than 1% to 10% of the pool, with the top ten loans (excluding defeasance) constituting 52% of the pool. Two loans, constituting 2% of the pool, have investment-grade structured credit assessments. One loan, constituting less than 1% of the pool, has defeased and is secured by US government securities.

Thirty-seven loans, constituting 26% of the pool, are on the master servicer's watchlist. The watchlist includes loans that meet certain portfolio review guidelines established as part of the CRE Finance Council (CREFC) monthly reporting package. As part of Moody's ongoing monitoring of a transaction, the agency reviews the watchlist to assess which loans have material issues that could affect performance.

Twenty-four loans have been liquidated from the pool, contributing to an aggregate realized loss of $76 million (for an average loss severity of 7%). Sixteen loans, constituting 12% of the pool, are currently in special servicing. The largest specially serviced loan is the Central / Eastern Industrial Pool ($87 million -- 4% of the pool), which is secured by 13 industrial properties totaling 2.1 million square feet located across several U.S. states. The loan transferred to special servicing in July 2010 for imminent default. The servicer reported occupancy of 77% for the portfolio as of May 2014, unchanged from Moody's prior review. Negotiations with the borrower are ongoing while the servicer dual-tracks foreclosure.

The remaining 15 specially serviced loans are secured by a mix of property types. Moody's estimates an aggregate $176 million loss for the specially serviced loans (58% expected loss on average).

Moody's has assumed a high default probability for 21 poorly performing loans, constituting 16% of the pool, and has estimated an aggregate loss of $102 million (a 26% expected loss based on a 53% probability default) from these troubled loans.

Moody's received full year 2012 operating results for 97% of the pool, and full year 2013 operating results for 91% of the pool. Moody's weighted average conduit LTV is 114%, compared to 113% at Moody's last review. Moody's conduit component excludes loans with structured credit assessments, defeased and CTL loans, and specially serviced and troubled loans. Moody's net cash flow (NCF) reflects a weighted average haircut of 6.3% to the most recently available net operating income (NOI). Moody's value reflects a weighted average capitalization rate of 9.3 %.

Moody's actual and stressed conduit DSCRs are 1.38X and 0.92X, respectively, compared to 1.37X and 0.91X at the last review. Moody's actual DSCR is based on Moody's NCF and the loan's actual debt service. Moody's stressed DSCR is based on Moody's NCF and a 9.25% stress rate the agency applied to the loan balance.

The largest loan with a structured credit assessment is the High Bluff Ridge at Del Mar Loan ($33 million -- 1% of the pool), which is secured by an office property located approximately 20 miles north of downtown San Diego. The property consists of three, low-rise, Class A buildings constructed in 2005. The property was 93% occupied as of December 2013, compared to 92% reported at Moody's last review. The third largest tenant, occupying 11% of the property's net rentable area (NRA) recently renewed its lease through 2019. Moody's structured credit assessment and stressed DSCR are baa3 (sca.pd) and 1.42X, respectively, unchanged from the last review.

The second largest loan with a structured credit assessment is the Lawndale Estates Loan ($7 million -- less than 1% of the pool), which is secured by a 673-unit manufactured housing community in Saginaw, Michigan. Occupancy was 80% as of December 2013. Moody's structured credit assessment and stressed DSCR are a2 (sca.pd) and 2.02X, respectively, compared to a2 (sca.pd) and 2.15X at the last review.

The top three performing conduit loans represent 28% of the pool balance. The largest loan is the 666 Fifth Avenue Loan ($258 million -- 10% of the pool),which represents a pari-passu interest in a $1.22 billion first mortgage loan, secured by a 1.5 million square foot office tower in Midtown Manhattan. In December 2011, as part of a modification, the original loan was bifurcated into $1.1 billion A-Note and a $115 million B-Note. The B-Note interest was reduced to 0%, while the A-Note interest pay rate was initially reduced to 3%. The current A-Note pay rate is 4.5% and the pay rate increases annually until it returns to the original 6.353%. The property was recapitalized with $110 million of new equity as part of the modification. The borrower contributed $30 million, while Vornado contributed $80 million. The property was 87% leased as of March 2014 compared to 82% in September 2012 and 77% in December 2011. The loan returned to the master servicer in March 2012 and is performing under the modified terms. Moody's considers the B Note ($37.4 million) as a troubled loan and recognized a significant loss against it. Moody's LTV and stressed DSCR for the modified A-Note are 138% and 0.63X, respectively, unchanged from the last review.

The second largest loan is the Ashford Hospitality Pool 6 Loan ($254 million -- 10% of the pool). The loan is secured by a portfolio of three full-service hotels located in Florida, Texas and Washington State. Portfolio financial performance has improved steadily into the economic recovery, with RevPar increasing to $135.20 in 2013, up from $127.63 in 2012 and $120.37 in 2011. Moody's LTV and stressed DSCR are 126% and 0.94X, respectively, compared to 129% and 0.92X at the last review.

The third largest loan is the Independence Mall Loan ($200 million -- 8% of the pool). The loan is secured by a regional mall in Independence, Missouri, approximately 10 miles east of downtown Kansas City. The mall's anchors are JC Penney, Sears, and Dillard's. Dillard's owns its own space. Total mall occupancy was 94% as of year-end 2013. Comp inline sales for the center were $340 per square foot. Moody's LTV and stressed DSCR are 111% and, 0.83X, respectively, compared to 109% and 0.84X at the last review.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions of the disclosure form.

Moody's did not receive or take into account a third-party assessment on the due diligence performed regarding the underlying assets or financial instruments related to the monitoring of this transaction in the past six months.

The analysis includes an assessment of collateral characteristics and performance to determine the expected collateral loss or a range of expected collateral losses or cash flows to the rated instruments. As a second step, Moody's estimates expected collateral losses or cash flows using a quantitative tool that takes into account credit enhancement, loss allocation and other structural features, to derive the expected loss for each rated instrument.

Moody's did not use any stress scenario simulations in its analysis.

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Wesley Flamer-Binion
Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Sandra Ruffin
VP - Senior Credit Officer
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's Affirms 21 Classes of WBCMT 2007-C33
No Related Data.
© 2015 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND CREDIT RATINGS AND RESEARCH PUBLICATIONS PUBLISHED BY MOODY’S (“MOODY’S PUBLICATIONS”) MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS FOR RETAIL INVESTORS TO CONSIDER MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS IN MAKING ANY INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s Publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

For Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail clients. It would be dangerous for “retail clients” to make any investment decision based on MOODY’S credit rating. If in doubt you should contact your financial or other professional adviser.

For Japan only: MOODY'S Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of MOODY'S Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.
© 2015 Moody's Investors Service, Inc., Moody’s Analytics, Inc. and/or their affiliates and licensors. All rights reserved.
Regional Sites: