OREANDA-NEWS. Fitch Ratings has upgraded three classes and affirmed 14 classes of Wachovia Bank Commercial Mortgage Trust's commercial mortgage pass-through certificates, series 2007-C30. Additionally, Fitch removed five classes from Rating Watch Positive. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS
The upgrades are the result of increased credit enhancement due to the payoff of the transaction's pari passu portion of the Stuyvesant Town/Peter Cooper Village (ST/PCV) loan (formerly 22.4% of the pool).

Although Fitch had previously placed five classes on Rating Watch Positive, classes B and C were affirmed as the concentration of specially serviced loans remains high at 14.8%, which 28% are real estate owned (REO).

The recent sale of the ST/PCV asset and the paydown as of the January 2016 remittance resulted in a full recovery of the transaction's $1.5 billion portion of the $3 billion former loan amount and additional 'gain-on sale' proceeds in excess of the total loan balance. The A-1A class balance was reduced by 70% from the principal proceeds, while the 'gain on sale' proceeds of approximately $96 million were used to reimburse interest shortfalls to classes A-J through G and partial recoveries to class H. Interest shortfalls are currently affecting classes H through S.

Fitch modelled losses of 15.2% of the remaining pool; expected losses on the original pool balance total 11.5%, which is down 27.5% from Fitch's last full rating action in March 2015 and includes $128.8 million (1.6% of the original pool balance) in realized losses to date. Fitch has designated 56 loans (26.1%) as Fitch Loans of Concern, which includes 22 specially serviced assets (14.8%).

As of the January 2016 distribution date, the pool's aggregate principal balance has been reduced by 35.1% to $5.13 billion from $7.9 billion at issuance. Per the servicer reporting, 14 loans (2.4% of the pool) are defeased.

The largest contributor to expected losses is the specially-serviced Four Seasons Aviara Resort - Carlsbad, CA loan (3.6% of the pool), which is secured by a resort hotel with 329 rooms and an Arnold Palmer designed 18-hole golf course. The property is now known as the Park Hyatt Aviara. The loan transferred to the special servicer in April 2013 for a second time due to monetary default after originally being modified and returned to the master servicer in May 2011. The loan modification included a maturity extension from February 2012 to February 2017, additional reserves, and a reduction in interest rate to 2% for the first year, 2.75% for the second year, 4.5% for the third year, and a coupon rate of 5.94% thereafter. The servicer reported net operating income (NOI) debt service coverage ratio (DSCR) as June 2015 was 0.50x. The reported occupancy, ADR, and RevPAR as of November 2015 was 70%, $238 and $167 respectively compared to the competitive set of 70%, $297, $208.

The property underwent an inspection in May 2015 and no immediate repairs were indicated. Hyatt has submitted an extensive six-year capital plan for several million dollars of upgrades and replacements that is under review. According to the servicer, disposition options continue to be evaluated. The loan is now listed as being in foreclosure.

The second largest contributor to expected losses is the Bank One Center loan (2.8%), which is secured by 1,530,957 square foot(sf), 60-story office building in the Dallas, Texas CBD. The loan was previously with the special servicer before being returned to the master servicer in December 2013. While at the special servicer the loan was assumed by M-M Properties Inc. and CBRE Global Investors and was modified. The loan modification included a bifurcation into an A-note ($143.5 million) and B-note ($33.7 million), maturity extension from January 2017 to January 2020, and additional reserves. In addition, the A-note is interest only until maturity, with a reduction in the interest rate to 4.5% for the first four years, and a coupon rate of 5.767% thereafter. The servicer reported a year-end 2014 NOI DSCR of 1.18x and a September 2015 NOI DSCR of 1.04x. As of the September 2015 rent roll occupancy was 64.7% and only 5% of the leases expire through 2017. The loan remains current according to the terms of the modification.

The third largest contributor to expected losses is the Five Times Square loan (10.5%), which is secured by a leasehold interest in a 1.1 million square foot (sf) office property located in the heart of Times Square in New York City. The servicer reported year-end 2014 NOI DSCR was 1.16x and the September 2015 DSCR was 1.15x with an occupancy of 100%. The largest tenant is Ernst & Young (88.5%) through 2022 with two 10-year extension options. All retail tenants including Red Lobster, the largest retail tenant, have leases that extend until at least 2018. The loan is highly leveraged, with the A-note at $973 per sf and total debt at $1,095 per sf. Fitch modelled losses based on the existing NOI and a stressed cap rate; however, given the location and quality of the asset, losses are unlikely.

RATING SENSITIVITIES
The Rating Outlooks on classes A-3 through A-1A remain Stable due to the senior payment priority in the capital structure and increased credit enhancement. Classes A-M, A-MFL, and A-J have also been assigned Stable Outlooks due to increased credit enhancement. Additional upgrades to these classes and classes B and C are possible if losses on specially serviced assets are at or lower than expected and with continued paydown. Conversely, downgrades are possible if pool performance continues to deteriorate and losses are higher than expected. Additional downgrades to the distressed classes (those rated below 'B') are expected as losses are realized.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action

Fitch upgrades and removes the following classes from Rating Watch Positive:

--$540.3 million class A-M to 'Asf' from 'BBB-sf'; Outlook Stable;
--$250 million class A-MFL to 'Asf' from 'BBB-sf'; Outlook Stable;
--$671.8 million class A-J to 'Bsf' from 'CCCsf'; Outlook Stable.

Fitch affirms and removes the following classes from Rating Watch Positive:

--$49.4 million class B at 'CCCsf'; RE 55%;
--$79 million class C at 'CCCsf'; RE 0%.

Fitch affirms the following classes:

--$151.3 million class A-3 at 'AAAsf'; Outlook Stable;
--$195.5 million class A-4 at 'AAAsf'; Outlook Stable;
--$18.6 million class A-PB at 'AAAsf'; Outlook Stable;
--$1.9 billion class A-5 at 'AAAsf'; Outlook Stable;
--$644.4 million class A-1A at 'AAAsf'; Outlook Stable;
--$69.2 million class D at 'CCsf'; RE 0%;
--$59.3 million class E at 'CCsf'; RE 0%;
--$69.2 million class F at 'CCsf'; RE 0%;
--$98.8 million class G at 'CCsf'; RE 0%;
--$79 million class H at 'CCsf'; RE 0%;
--$88.9 million class J at 'CCsf'; RE 0%;
--$79 million class K at 'Csf'; RE 0%.

The class A-1 and A-2 certificates have paid in full. Fitch does not rate the class L, M, N, O, P, Q and S certificates. Fitch previously withdrew the ratings on the interest-only class X-P, X-C and X-W certificates.