DBRS Downgrades One, Confirms 21 Classes of WBCMT, Series 2004-C15

DBRS has today downgraded one class in the Wachovia Bank Commercial Mortgage Trust, Series 2004-C15 transaction as follows:

-- Class K to C (sf) from CCC (sf)

In addition, DBRS has confirmed Class A-1A through Class J and Class L through Class O, including the notional Class X-C. DBRS has also confirmed the ratings of the rake bonds associated with the non-pooled 175 West Jackson B-note. DBRS does not rate the first loss piece, Class P.

The trends on Class G and Class H have been changed to Negative from Stable. The trends on Class A-1A through Class F, including Class X-C and the rake bonds, remain Stable.

The downgrade of Class K is a result of increased projected losses associated with two loans in special servicing. Furthermore, the estimated losses incurred by the trust, with respect to these two loans, will erode the credit enhancement to a number of the lower-rated classes, prompting the trend changes on Class G and Class H.

The transaction has seasoned for almost nine years, with 71 loans remaining out of the original 87. The transaction also benefits from defeasance collateral, representing 3.2% of the current pool balance. Total collateral reduction as of the March 2013 remittance report is approximately 35.4%. The transaction as a whole reported a weighted-average debt service coverage ratio (DSCR) of 1.31 times (x).

According to the March 2013 remittance report, there are three loans in special servicing and ten loans on the servicer’s watchlist, which represent 4.7% and 19.6% of the current pool balance, respectively.

At issuance, DBRS shadow-rated two loans, comprising 24.5% of the current pool balance as investment grade. DBRS has today confirmed that the performance of these loans remains consistent with investment-grade loan characteristics.

As part of its review, DBRS analyzed the top 15 loans, loans on the servicer’s watchlist, specially serviced loans and shadow-rated loans, which comprise approximately 68.4% of the current pool balance.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction, including details on the largest loans in the pool and loans on the servicer’s watchlist. The March 2013 Monthly CMBS Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

Notes:
All figures are in U.S. dollars unless otherwise noted.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies.