--$0a Class A-3FX 'AAAsf'; Outlook Stable;
(*) Notional amount and interest-only.
(a) Privately placed pursuant to Rule 144A.
(b) Class A-S, B and C certificates may be exchanged for class PEX certificates; and class PEX certificates may be exchanged for class A-S, B and C certificates.
Fitch does not rate the
The certificates represent the beneficial ownership in the trust, primary assets of which are 71 loans secured by 144 commercial properties having an aggregate principal balance of approximately
Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 74.1% of the properties by balance, cash flow analysis and asset summary reviews of 84.3% of the pool.
KEY RATING DRIVERS
Fitch Leverage: The pool has higher Fitch leverage, with a weighted average Fitch LTV and DSCR of 101.7% and 1.19x, respectively. The average 2012 Fitch DSCR and LTV were 1.24x and 97.2%, respectively. The average 2013 Fitch DSCR and LTV were 1.29x and 101.6%, respectively.
Credit Opinion Loan: The third largest loan in the pool (6.4%) has a Fitch credit opinion of 'BBB-sf' on a stand-alone basis. The loan is secured by The Outlet Collection '
Lower Concentration: Loan concentration is slightly lower than recent transactions. The largest loan represents 11.1% of the pool, and the top 10 loans represent 48.6%. The average top 10 concentrations for full year 2013 and 2012 conduit transactions were 54.3% and 54.2%, respectively. The LCI is 362 and the SCI is 371, which indicate an average level of loan diversity and an above-average level of sponsor diversity. The 2013 average LCI was 367 and the 2013 average SCI was 458.
For this transaction, Fitch's net cash flow (NCF) was 8.0% below the most recent net operating income (NOI) (for properties for which historical NOI was provided, excluding properties that were stabilizing during the most recent reporting period). Unanticipated further declines in property-level NCF could result in higher defaults and loss severity on defaulted loans, and could result in potential rating actions on the certificates. Fitch evaluated the sensitivity of the ratings assigned to WFRBS 2014-LC14 certificates and found that the transaction displays average sensitivity to further declines in NCF. In a scenario in which NCF declined a further 20% from Fitch's NCF, a downgrade of the junior 'AAAsf' certificates to 'A-sf' could result. In a more severe scenario, in which NCF declined a further 30% from Fitch's NCF, a downgrade of the junior 'AAAsf' certificates to 'BBB-sf' could result. The presale report includes a detailed explanation of additional stresses and sensitivities on pages 79 - 80.
The master servicer will be
The presale report is available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
--'Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions (
--Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (
--Global Structured Finance Rating Criteria (
--U.S. Commercial Mortgage Servicer Rating Criteria (
--U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (
--Counterparty Criteria for Structured Finance and Covered Bonds (
Counterparty Criteria for Structured Finance and Covered Bonds
Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
Global Structured Finance Rating Criteria
U.S. Commercial Mortgage Servicer Rating Criteria -- Effective
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
Source: Fitch Ratings
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