Fitch Upgrades WB 2003-C4
KEY RATING DRIVERS
The upgrade reflects the expectation the class will pay off in full with 12 months. Four (\$4.5 million, 26.4%) of the remaining 12 loans are defeased. In addition, the transaction is receiving amortization from five fully amortizing loans (48.1%) and one 15-year term loans (7.7%).
Overall collateral performance has been stable since the last rating. Fitch modeled losses of 11.6% for the remaining pool; expected losses as a percentage of the original pool balance are at 1.2%, including losses already incurred to date (0.86%). There is one specially serviced asset (17.8%). Fitch has designated one loan as a loan of concern (7.7%).
As of the February 2015 distribution date, the pool's aggregate principal balance has been reduced by approximately 98.2% to \$16.1 million from \$891.8 billion at issuance. Interest shortfalls total \$0.41 million and affect class P.
The specially serviced asset is the real estate owned (REO) Highland Park Apartments, a 116-unit multifamily property located in Macon, GA. The property is located along Interstate 75, 75 miles southeast of Atlanta, GA and is in close proximity to Robbins Air Force base. The property was transferred to the special servicer in January 2013 for maturity default and foreclosure proceedings were completed in October 2013. Occupancy has increased to 86% as of year-end 2014 from a low of 60% in April 2014.
The Fitch loan of concern is Summit Place Townhomes (7.7%), a 48-unit multifamily community located in Biloxi, MS. The property was recently renamed Providence Pointe II and shares office, laundry, and maintenance facilities with an adjacent property. The property suffers from low economic growth prospects and two competing properties within a mile of the subject. The property's occupancy improved to 85% as of September 2014 from a low of 73% in 2013. The sponsor is currently addressing deferred maintenance issues in order to stabilize occupancy. The loan remains current.
Class O is expected to pay in full. Fitch expects minimal losses to the remaining pool balance. Any incurred losses are expected to be absorbed by the non-rated class P.
Fitch upgrades the following class as indicated:
--\$2.6 million class O to 'AAAsf' from 'BBsf', Outlook Stable.
Class A-1, A-1A, A-2, B, C, D, E, F, G, H, J, K, L, M, N and the interest-only class X-P have repaid in full. Fitch does not rate \$17 million class P. Class X-C was previously withdrawn.