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By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

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1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

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Rating Action:

Moody's Upgrades Two and Affirms Two Classes of WBCMT 2003-C7

14 Jul 2016

Approximately $24 Million of Structured Securities Affected

New York, July 14, 2016 -- Moody's Investors Service has affirmed the ratings on two classes and upgraded the ratings on two classes in Wachovia Bank Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2003-C7 as follows:

Cl. F, Upgraded to Aa2 (sf); previously on Jul 31, 2015 Upgraded to A1 (sf)

Cl. G, Upgraded to Caa1 (sf); previously on Jul 31, 2015 Affirmed Caa2 (sf)

Cl. H, Affirmed C (sf); previously on Jul 31, 2015 Affirmed C (sf)

Cl. X-C, Affirmed Ca (sf); previously on Jul 31, 2015 Downgraded to Ca (sf)

RATINGS RATIONALE

The ratings on two P&I classes were upgraded based primarily on an increase in credit support resulting from loan paydowns and amortization. The deal has paid down 8% since Moody's last review.

The rating on one P&I class was affirmed due to losses.

The rating on the IO Class (Class X-C) was affirmed based on the credit performance (or the weighted average rating factor or WARF) of the referenced classes. The IO Class has an uncertainty of future interest payments based on the fact that all of its references classes have an interest rate equal to the weighted average coupon of the pool.

Moody's rating action reflects a base expected loss of 0.4% of the current balance, compared to 0.9% at Moody's last review. Moody's base expected loss plus realized losses is now 6.6% of the original pooled balance, the same as at last review. Moody's provides a current list of base expected losses for conduit and fusion CMBS transactions on moodys.com at

http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF215255.

Moody's does not anticipate losses from the remaining collateral in the current environment. However, over the remaining life of the transaction, losses may emerge from macro stresses to the environment and changes in collateral performance. Our ratings reflect the potential for future losses under varying levels of stress.

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

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 methodologies used in these ratings were " Approach to Rating US and Canadian Conduit/Fusion CMBS" published in December 2014, and "Moody's Approach to Rating Large Loan and Single Asset/Single Borrower CMBS" published in October 2015. Please see the Rating Methodology page on www.moodys.com for a copy of these methodologies.

DESCRIPTION OF MODELS USED

Moody's review used the excel-based CMBS Conduit Model, which it uses for both conduit and fusion transactions. Credit enhancement levels for conduit loans 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). Moody's fuses the conduit results with the results of its analysis of investment grade structured credit assessed loans and any conduit loan that represents 10% or greater of the current pool balance.

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 6, the same as at Moody's last review.

When the Herf falls below 20, Moody's uses the excel-based Large Loan Model and then reconciles and weights the results from the conduit and large loan models in formulating a rating recommendation. The large loan model derives credit enhancement levels based on an aggregation of adjusted loan-level proceeds derived from Moody's loan-level LTV ratios. Major adjustments to determining proceeds include leverage, loan structure, property type and sponsorship. Moody's also further adjusts these aggregated proceeds for any pooling benefits associated with loan level diversity and other concentrations and correlations.

DEAL PERFORMANCE

As of the June 15, 2016 distribution date, the transaction's aggregate certificate balance has decreased by 98% to $24 million from $1 billion at securitization. The certificates are collateralized by fourteen mortgage loans ranging in size from less than 2% to 33% of the pool, with the top ten loans constituting 95% of the pool. Two loans, constituting 4% of the pool, have defeased and are secured by US government securities.

One loan, constituting 33% of the pool, is 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.

Six loans have been liquidated from the pool, resulting in an aggregate realized loss of $66.5 million (for an average loss severity of 71%). No loans are currently in special servicing.

Moody's received full year 2014 and full year 2015 operating results for 100% of the pool. Moody's weighted average conduit LTV is 61%, the same as 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 23% to the most recently available net operating income (NOI). Moody's value reflects a weighted average capitalization rate of 9.1%.

Moody's actual and stressed conduit DSCRs are 1.18X and 1.82X, respectively, compared to 1.23X and 1.77X 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 top three conduit loans represent 60% of the pool balance. The largest loan is the Plaza de Laredo Loan ($7.9 million -- 33% of the pool), which is secured by a retail property located in Laredo, Texas, approximately 2.5 hours south of San Antonio near the border of Mexico. The top three tenants are Home Depot, Academy Sports & Outdoors, and Office Depot. As of December 2015, the property was 99% leased, compared to 100% at last review. The loan has amortized 30% since securitization and is scheduled to mature in October 2023. Moody's LTV and stressed DSCR are 65% and 1.55X, respectively, compared to 67% and 1.49X at the last review.

The second largest loan is the Brewster Hall Loan ($3.4 million -- 14% of the pool), which is secured by a 41-unit student housing property near the campus of Eastern Washington University approximately 20 miles SW of Spokane, Washington. Performance has remained stable and has benefited from 23% amortization since securitization. The property was 100% leased as of March 2016, the same as at last review. The loan has an anticipated repayment date of July 2018. Moody's LTV and stressed DSCR are 86% and 1.1X, respectively, compared to 90% and 1.06X at the last review.

The third largest loan is the Clearwater and Ocala, Florida Loan (formerly known as the Florida Eckerd Portfolio Loan) ($2.9 million -- 12% of the pool), which was originally secured by two cross-collateralized and cross-defaulted single-tenant Eckerd stores in Clearwater and Ocala, Florida. The property in Clearwater is now a Main Street Thrift Shop and the property in Ocala is a Dollar Tree. Performance has remained stable and the loan has benefited from 49% of amortization since securitization. The loan is scheduled to mature in September 2023. Moody's LTV and stressed DSCR are 57% and 1.72X, respectively, compared to 62% and 1.56X 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.

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 credit rating action on the support provider and in relation to each particular credit 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 credit rating action, and whose ratings may change as a result of this credit 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.

Stephen L Renna
Associate 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

Keith Banhazl
Associate Managing Director
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 Upgrades Two and Affirms Two Classes of WBCMT 2003-C7
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

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