Wells Fargo and the RBS Securities plan to issue a $1.25 billion CMBS conduit backed by a pool of 71 commercial mortgage loans secured by 144 properties.
The deal,WFRBS Commercial Mortgage Trust 2014-LC14 (WFRBS 2014-LC14) , has been assigned ratings by Fitch Ratings.
The issuer has structured super-senior AAA’ classes at 30.000% credit enhancement and a subordinate AAA’ rated class A-S with 22.375% credit enhancement.
Fitch notes in the presale report that the junior subordinate AAA’ notes are sized at $95.7 million, larger than what the ratings agency prefers to see in senior/subordinate structures. However the concern regarding tranche size is mitigated by the credit enhancement at the junior AAA’ (22.37%) being more than Fitch would require based on the pool’s loan-level attributes.
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.
Retail properties represent the highest concentration of the pool at 33.6%. Additionally, office properties represent 15.3%.
