DBRS
Class A to BB (low) (sf) from A (sf)
Class B to B (low) (sf) from BBB (sf)
Class C to CCC (sf) from BB (high) (sf)
Class X-A to BB (sf) from A (high) (sf)
With this review, DBRS Morningstar removed all of the classes from Under Review with Negative Implications, where they were placed on
DBRS Morningstar also discontinued and withdrew the rating on Class X-B as it references Class C, which carries a CCC (sf) rating. The trends on Classes A, B, and X-A are Negative. The rating on Class C does not carry a trend.
The rating downgrades and Negative trends are reflective of the elevated risk of loss to the trust given the updated appraised value reported on the super-regional mall that secures the trust's only loan, as well as the uncertain road to recovery for regional malls, which have been severely affected by the Coronavirus Disease (COVID-19) pandemic. Since the deal was last reviewed, the loan returned to the master servicer in
The loan sponsor is The Pyramid Companies (Pyramid), the largest privately held shopping mall developer in the
The transaction is collateralized by a
While the loan is current and performing under the terms of the modification as of the most recent remittance, the mall's performance had been declining over the past few years as several anchor tenants filed bankruptcy and/or vacated. The coronavirus pandemic brought about forced closures and other distancing restrictions, which further depressed cash flow in 2020. Of particular concern, the mall has historically relied heavily on traffic from shoppers from
Walden Galleria is a super-regional mall that is considered the premier shopping destination in the Buffalo metropolitan statistical area. Of the subject mall's 1.6 million square feet (sf) of space, approximately 1.2 million sf serves as collateral for the subject loan. Anchors include
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.
Class X-A is an interest-only (IO) certificate that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.
All ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.
DBRS Morningstar provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for this transaction.
For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com The platform includes loan-level data for most outstanding CMBS transactions (including non-DBRS Morningstar-rated), as well as loan-level and transaction-level commentary for most DBRS Morningstar-rated and -monitored transactions.
Notes:
All figures are in
The principal methodology is North American CMBS Surveillance Methodology (
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.
For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.
For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process. Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The DBRS Morningstar long-term rating scale definition indicates that ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.
Generally, the conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar's outlooks and ratings are monitored.
For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.
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Ratings
Date Issued Debt Rated Action Rating Trend Attributesi
US = Lead Analyst based in USA
CA = Lead Analyst based in
EU = Lead Analyst based in EU
E = EU endorsed
U =
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-participating
24-Aug-21 Commercial Mortgage Pass-Through Certificates, Series 2012-WLDN, Class X-A Downgraded BB (sf) Neg US
24-Aug-21 Commercial Mortgage Pass-Through Certificates, Series 2012-WLDN, Class A Downgraded BB (low) (sf) Neg US
24-Aug-21 Commercial Mortgage Pass-Through Certificates, Series 2012-WLDN, ClassB Downgraded B (low) (sf) Neg US
24-Aug-21 Commercial Mortgage Pass-Through Certificates, Series 2012-WLDN, ClassC Downgraded CC C (sf) -- US
24-Aug-21 Commercial Mortgage Pass-Through Certificates, Series 2012-WLDN, Class X-B Disc.-W/drwn Discontinued -- US
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