Fitch to Rate WFRBS Commercial Mortgage Trust 2014-C22 Pass-Thru Certificates; Presale Issued

Fitch Ratings has issued a presale report on Wells Fargo Bank, N.A.'s WFRBS Commercial Mortgage Trust 2014-C22 Pass-Through Certificates.

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

--$57,333,000 Class A-1 'AAAsf'; Outlook Stable;

--$75,863,000 Class A-2 'AAAsf'; Outlook Stable;

--$59,936,000 Class A-3 'AAAsf'; Outlook Stable;

--$360,000,000 Class A-4 'AAAsf'; Outlook Stable;

--$386,043,000 Class A-5 'AAAsf'; Outlook Stable;

--$102,144,000 Class A-SB 'AAAsf'; Outlook Stable;

--$104,132,000b Class A-S 'AAAsf'; Outlook Stable;

--$1,145,451,000* Class X-A 'AAAsf'; Outlook Stable;

--$68,802,000b Class B 'AA-sf'; Outlook Stable;

--$52,066,000b Class C 'A-sf'; Outlook Stable;

--$225,000,000b Class PEX 'A-sf'; Outlook Stable;

--$31,611,000*a Class X-C 'BBsf'; Outlook Stable;

--$14,876,000*a Class X-D 'Bsf'; Outlook Stable;

--$111,570,000a Class D 'BBB-sf'; Outlook Stable;

--$31,611,000a Class E 'BBsf'; Outlook Stable;

--$14,876,000a Class F 'Bsf'; 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.

The expected ratings are based on information provided by the issuer as of Aug. 28, 2014. Fitch does not expect to rate the $232,438,000 interest-only class X-B, $63,223,793 interest-only class X-E, $29,558,534 interest-only class X-Y, or the $63,223,793 class G.

The certificates represent beneficial ownership in the trust, primary assets of which are 129 loans secured by 172 commercial properties having an aggregate principal balance of approximately $1.487 billion as of the cutoff date. The loans were contributed to the trust by Wells Fargo Bank, National Association, The Royal Bank of Scotland, Rialto Mortgage Finance, LLC, Liberty Island Group I LLC, NCB, FSB, C-III Commercial Mortgage LLC, Basis Real Estate Capital II, LLC, and Walker & Dunlop Commercial Property Funding I WF, LLC.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 62.2% of the properties by balance, cash flow analysis of 70.7%, and asset summary reviews on 68.8% of the pool.

KEY RATING DRIVERS

Fitch Leverage: The pool's Fitch DSCR and LTV are 1.47x and 106.2%, respectively, compared with the first-half 2014 averages of 1.19x and 105.6%, respectively. However, excluding the co-op properties, the pool's Fitch DSCR and LTV are 1.16x and 110.1%, respectively. This represents higher leverage than recent Fitch-rated fixed-rate deals, excluding the 19 loans collateralized by cooperative housing (co-op) properties.

Diverse Pool: The pool is diverse by loan size and sponsor as compared to recent transactions, as evidenced by a loan concentration index (LCI) of 317 and sponsor concentration index (SCI) of 330. Also, the 10 largest loans represent 43.6% of the total pool balance, which is lower than the average 2013 top 10 concentration of 54.5% and the first-half of 2014 average of 52.5%.

Single-Tenant Assets: Of the Top 20 loans, there are five loans (9.3% of the pool) that are secured by properties leased to a single tenant. This includes both CSM Bakery Portfolios (4.6%), Preferred Freezer Houston (1.7%), 400 Atlantic (1.7%), and Lincoln Plaza (1.2%).

Limited Amortization: Approximately 17% of the pool is full-term interest-only, and 41.8% of the pool is partial-term interest-only. Four loans within the pool (8.7%) are structured as ARD loans. The remainder of the pool (77 loans, 32.5%) consists of amortizing balloon loans with loan terms of five to 10 years. Based on the scheduled balance at maturity, the pool will have paid down 11.2%.

RATING SENSITIVITIES

For this transaction, Fitch's net cash flow (NCF) was 7.31% below the most recent NOI (for properties for which a recent NOI was provided, excluding properties that were stabilizing during this period). Unanticipated further declines in property-level NCF could result in higher defaults and loss severities on defaulted loans, and could result in potential rating actions on the certificates. Fitch evaluated the sensitivity of the ratings assigned to WFRBS 2014-C22 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 80 - 81.

The master servicers will be Wells Fargo Bank, National Association and NCB, FSB, rated 'CMS1-' and 'CMS2-', respectively, by Fitch. The special servicers will be CWCapital Asset Management, LLC and NCB, FSB rated 'CSS1-' and 'CSS3+', respectively, by Fitch.

The presale report is available at 'www.fitchratings.com' or by clicking on the link.

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

Applicable Criteria and Related Research:

--'Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions (June 2014)

--Global Structured Finance Rating Criteria (May 2014)

-- Rating Criteria for U.S. Commercial Mortgage Servicers (February 2014)

--U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (December 2013)

Applicable Criteria and Related Research: WFRBS Commercial Mortgage Trust 2014-C22 (US CMBS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=766989

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Rating Criteria for U.S. Commercial Mortgage Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382

Global Structured Finance Rating Criteria

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

Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748778

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=862915

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