Approximately $495.7 Million of Structured Securities Affected
New York, December 10, 2010 -- Moody's Investors Service (Moody's) placed 15 classes of Wachovia Bank
Commercial Mortgage Trust, Commercial Mortgage Pass-Through
Certificates, Series 2006-C26, on review for possible
downgrade as follows:
Cl. A-M, Aaa (sf) Placed Under Review for Possible
Downgrade; previously on Jul 12, 2006 Definitive Rating Assigned
Aaa (sf)
Cl. A-J, A1 (sf) Placed Under Review for Possible
Downgrade; previously on Feb 10, 2009 Downgraded to A1 (sf)
Cl. B, A3 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 10, 2009 Downgraded to A3 (sf)
Cl. C, Baa1 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 10, 2009 Downgraded to Baa1 (sf)
Cl. D, Baa3 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 10, 2009 Downgraded to Baa3 (sf)
Cl. E, Ba2 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 10, 2009 Downgraded to Ba2 (sf)
Cl. F, B1 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 10, 2009 Downgraded to B1 (sf)
Cl. G, B3 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 10, 2009 Downgraded to B3 (sf)
Cl. H, Caa1 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 10, 2009 Downgraded to Caa1 (sf)
Cl. J, Caa2 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 10, 2009 Downgraded to Caa2 (sf)
Cl. K, Caa2 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 10, 2009 Downgraded to Caa2 (sf)
Cl. L, Caa2 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 10, 2009 Downgraded to Caa2 (sf)
Cl. M, Caa3 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 10, 2009 Downgraded to Caa3 (sf)
Cl. N, Caa3 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 10, 2009 Downgraded to Caa3 (sf)
Cl. O, Caa3 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 10, 2009 Downgraded to Caa3 (sf)
The classes were placed on review for possible downgrade due to higher
expected losses for the pool resulting from realized and anticipated losses
from specially serviced and troubled loans.
The rating action is a result of Moody's on-going surveillance
of commercial mortgage backed securities (CMBS) transactions. Moody's
monitors transactions on a monthly basis through two sets of quantitative
tools -- MOST® (Moody's Surveillance Trends) and CMM
(Commercial Mortgage Metrics) on Trepp -- and on a periodic
basis through a comprehensive review. Moody's prior full review
is summarized in a press release dated February 10, 2009.
Please see the ratings tab on the issuer / entity page on moodys.com
for the last rating action and the ratings history.
DEAL AND PERFORMANCE SUMMARY
As of the November 18, 2010 distribution date, the transaction's
aggregate certificate balance has decreased by 3.8% to $1.68
billion from $1.74 billion at securitization. The
Certificates are collateralized by 113 mortgage loans ranging in size
from less than 1% to 10.2% of the pool.
Twenty-six loans, representing 19% of the pool,
are on the master servicer's watchlist. The watchlist includes
loans which meet certain portfolio review guidelines established as part
of the CRE Finance Council (CREFC) monthly reporting package. As
part of our ongoing monitoring of a transaction, Moody's reviews
the watchlist to assess which loans have material issues that could impact
performance.
Two loans have been liquidated from the trust since securitization,
resulting in a $483,776 loss (19.4% loss severity)
for one of the loans. Currently eight loans, representing
9% of the pool, are in special servicing. The largest
specially serviced loan is the Eastern Shore Center loan ($68.9
million -- 4.1% of the pool), which was transferred
to special servicing in July 2009. The master servicer has recognized
an appraisal reduction of $37.7 million for this loan.
The remaining seven specially serviced loans are secured by a mix of property
types. The master servicer has recognized an aggregate $38.2
million appraisal reduction for six of the remaining specially serviced
loans.
Moody's review will focus on potential losses from specially serviced
and troubled loans and the performance of the overall pool.
In addition to methodologies and research available on moodys.com,
Moody's publishes a weekly summary of structured finance credit,
ratings and methodologies, available to all registered users of
our website, at www.moodys.com/SFQuickCheck.
New York
Keith Banhazl
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Michael M. Gerdes
Senior Vice President
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's Investors Service
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's Places 15 CMBS WBCMT 2006-C26 on Review for Possible Downgrade