DBRS Upgrades Three Classes of Wells Fargo Commercial Mortgage Trust 2018-C45

DBRS, Inc. (DBRS) upgraded three classes of Commercial Mortgage Pass-Through Certificates, Series 2018-C45 (the Certificates) to be issued by Wells Fargo Commercial Mortgage Trust 2018-C45, as follows:

-- Class X-B from A (high) (sf) to AA (low) (sf)
-- Class C from A (sf) to A (high) (sf)
-- Class E-RR from BBB (low) (sf) to BBB (sf)

Class E-RR will be privately placed. The Class X-B balance is notional.

The rating upgrades reflect the initiation of a shadow rating of A (low) on CoolSprings Galleria, the 11th-largest loan in the pool, since issuing provisional ratings on the above-referenced classes on June 20, 2018. The loan is secured by a regional mall located in Franklin, TN, a suburb of Nashville. The trust asset consists of a $20 million non-controlling pari passu note of a larger $150 million whole loan. Based on the subject’s solid in-line sales per square foot (psf) (excluding Apple) in 2017 of $450 psf, strong DBRS Term DSCR of 1.72 times, substantial scheduled amortization over the loan term of 18.9% due to the lack of any IO period, and high DBRS Exit Debt Yield of 13.4%, DBRS considers the credit quality associated with this loan to be A (low). For more information on this loan, please see page 66 of the presale report, which has been updated to reflect the new shadow rating on this loan.

Class X-B is an IO certificates that references a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated reference tranche adjusted upward by one notch if senior in the waterfall.

For more information on this transaction and supporting data, please log into www.viewpoint.dbrs.com. DBRS will continue to monitor this transaction with periodic updates provided in the DBRS Viewpoint platform.

Notes:
All figures are in U.S. dollars unless otherwise noted.

With regard to due diligence services, DBRS was provided with the Form ABS Due Diligence-15E (Form-15E), which contains the description of the information that the third party reviewed in conducting the due diligence services and a summary of the findings and conclusions. While DBRS did not require due diligence services outlined in Form-15E, DBRS did use the Data File outlined in the Independent Accountant’s Report in its analysis to determine the ratings.

The principal methodology is North American Multi-borrower CMBS Methodology, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance-related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. Please note that not every related methodology listed under a principal Structured Finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS 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.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.