Fitch Upgrades Two Classes of WBCMT 2005-C19

Fitch Ratings has upgraded two and affirmed 16 classes of Wachovia Bank Commercial Mortgage Trust, commercial mortgage pass-through certificates, series 2005-C19 (WBCMT 2005-C19). A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades reflect an increase in credit enhancement as a result of paydowns, defeasance, and stable performance of the underlying collateral since Fitch's last rating action. Fitch modeled losses of 3.8% of the remaining pool; expected losses on the original pool balance total 3.1%, including $24.1 million (1.5% of original pool balance) of realized losses to date. There are currently no specially serviced loans; however, Fitch has designated eight loans (9.7% of the current pool) as Fitch Loans of Concern.

As of the January 2015 distribution date, the pool's aggregate principal balance has been reduced by 58.9% to $663.2 million from $1.61 billion at issuance. According to the servicing report, six loans (32.5%) are defeased, including the largest loan in the pool (26.2%). Cumulative interest shortfalls are currently impacting the non-rated class P.

The largest contributor to Fitch-modeled losses is the Dunwoody Place Shopping Center loan (1.9% of pool). The loan is secured by a 103,053 square foot (sf) supermarket-anchored retail property located in Atlanta, GA. As of the October 2014 rent roll, the property was 97.5% occupied compared to 93.4% at year-end (YE) 2013, 78.9% at YE 2012, and 95% at issuance. The property is anchored by a Publix supermarket (55% of property square footage), which recently executed a five-year lease extension until May 2020. Two new leases totaling 16% of the total square footage was executed during 2014. Albeit the occupancy improvement, net operating income (NOI) has yet to rebound as YE 2013 NOI dropped 14% from YE 2012 and remains 48% below issuance, primarily due to lower rents and higher operating expenses. For the first nine months of 2014, the debt service coverage ratio, on a NOI basis, was 0.68x, compared to 0.66x at YE 2013, 0.76x at YE 2012, 0.91x at YE 2011, and 1.27x at issuance. According to REIS and as of the third quarter 2014, the Sandy Springs/North Fulton submarket of Atlanta reported a vacancy of 9.5% and 15.6% for anchor and non-anchor retail spaces, respectively.

RATING SENSITIVITIES

Rating Outlooks on classes A-6, A-1A, A-FL, A-M, A-J, B, C, D, F, G, and H are Stable due to increasing credit enhancement, defeasance, and continued paydown. Fitch performed additional stresses when considering upgrades. The Positive Outlook on class E reflects the possibility for future upgrades due to an expected increase in credit enhancement as maturing loans pay off this year (99% of the pool matures prior to the end of 2015). Distressed classes (those rated below 'Bsf') may be subject to further downgrades as additional losses are realized.

Fitch has upgraded and revised Rating Outlooks to the following classes as indicated:

--$20.2 million class C to 'AAAsf' from 'AAsf'; Outlook to Stable from Positive;

--$32.3 million class D to 'AAsf' from 'Asf'; Outlook to Stable from Positive.

In addition, Fitch has affirmed the following classes and revised Rating Outlooks as indicated:

--$146.4 million class A-6 at 'AAAsf'; Outlook Stable;

--$56.5 million class A-1A at 'AAAsf'; Outlook Stable;

--$80.7 million class A-FL at 'AAAsf'; Outlook Stable;

--$80.7 million class A-M at 'AAAsf'; Outlook Stable;

--$100.9 million class A-J at 'AAAsf'; Outlook Stable;

--$40.4 million class B at 'AAAsf'; Outlook Stable;

--$16.1 million class E at 'Asf'; Outlook to Positive from Stable;

--$20.2 million class F at 'BBBsf'; Outlook Stable;

--$16.1 million class G at 'BBsf'; Outlook Stable;

--$20.2 million class H at 'Bsf'; Outlook Stable;

--$8.1 million class J at 'CCCsf'; RE 100%;

--$8.1 million class K at 'CCCsf'; RE 0%;

--$6.1 million class L at 'CCCsf'; RE 0%;

--$4 million class M at 'CCCsf'; RE 0%;

--$2 million class N at 'CCCsf'; RE 0%;

--$4 million class O at 'Csf'; RE 0%.

The class A-1, A-2, A-3, A-4, A-5, and A-PB certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the ratings on the interest-only class X-P and X-C certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=978866

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