Fitch Ratings assigned triple-A to $735.9M Wells Fargo issue

Fitch Ratings assigned its triple-A rating to most classes in a coming $735.9 million issue of commercial mortgage-backed securities by Wells Fargo. The bank’s Commercial Mortgage Trust 2010-C1 is expected to issue price guidance for the sale Tuesday. There are 10 different classes within the pool, with 37 commercial mortgages secured by 59 properties. Wells Fargo Securities and Banc of America Securities will lead the sale. Deutsche Bank National Trust Co. is trustee and Wells Fargo Commercial Mortgage Securities is the depositor. The originators of the loans in the pool include Wells Fargo Bank,  Bank of America and Basis Real Estate Capital II. Midland Loan Services is the special servicer. Fitch analysts said the gilt-edged rating is supported by the low leverage of the loan pool, as well as strong ratios for loan concentration and property-type diversity. Robert Vrchota, managing director at Fitch, said the leverage ratios of the loans in the pool are 20 to 30 points less than that of loans originated in 2006, 2007 and 2008. “As the market becomes more competitive, we’ll see leverage creep up a little as structure will not be as tight as it’s been,” Vrchota said. “And we’ll probably see increased mezzanine and secondary loans, as well.” The long-frozen CMBS market may be thawing a bit, as a handful of deals are in various states of the pipeline. The Federal Deposit Insurance Corp. is bringing $500 million to market soon. There are also two, large deals coming that bundle hotel assets in CMBS, according to The Wall Street Journal. Write to Jason Philyaw.

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