Fitch: No Impact to WFRBS 2013-C18 as a Result of Additional Sponsor Disclosure

Business Wire

NEW YORK--(BUSINESS WIRE)--

The updated disclosure regarding one of the sponsors on the Sullivan Center loan in WFRBS Commercial Mortgage Trust 2013-C18 (WFRBS 2013-C18) will not impact the transaction's expected ratings, according to Fitch Ratings.

On Dec. 16, 2013, six days after Fitch issued a presale and expected ratings for WFRBS Commercial Mortgage Trust 2013-C18, the issuer provided additional disclosure that one of the sponsors and property manager for the sixth largest loan in the pool, a $38.5 million pari passu piece of a $113.5 million mortgage loan secured by the mixed-use office/retail building in Chicago, was indicted on federal criminal charges including seven counts of bank fraud, one count of mail fraud, and five counts of making false statements to banks. The indictment was filed on Dec. 12, 2013 and seeks forfeiture of $2,995,295 in alleged fraud proceeds.

While the indictment is new information, Fitch already highlighted sponsor credit issues as a primary concern in its presale and stressed its asset volatility score to address potential volatility as a result of possible sponsor related issues. In addition, the property manager has limited control to approve any lease or any agreement involving more than $15,000. The property manager may also be removed and replaced upon a conviction of fraud.

The Sullivan Center is a 15-story, 943,944-sf mixed-use office/retail building located within the Chicago central business district. The property secures a $113.5 million mortgage loan originated by UBS Real Estate Securities Inc. The loan is sponsored by Joseph Freed and Associates, Winthrop Realty Trust, and Elad Canada, Inc.

The presale report is available at 'www.fitchratings.com'.

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

Applicable Criteria and Related Research:

--'Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions (August 2013)

--Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (September 2013)

--Global Structured Finance Rating Criteria (May 2013)

--U.S. Commercial Mortgage Servicer Rating Criteria (February 2011)

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

--Counterparty Criteria for Structured Finance and Covered Bonds (May 2013)

Applicable Criteria and Related Research:

WFRBS Commercial Mortgage Trust 2013-C18 (US CMBS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=726377

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Contact:
Fitch Ratings
Primary Analyst
Brian Vorderbrueggen, +1-212-908-9102
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Robert Ritter, +1-212-908-1328
Analyst Trainee
or
Committee Chairperson
Robert Vrchota, +1-312-368-3336
Managing Director
or
Media Relations
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com
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