Wells Fargo Commercial Mortgage Trust 2021-SAVE — Moody’s assigns Definitive

Rating Action: Moody’s assigns Definitive Ratings to eight CMBS classes of Wells Fargo Commercial Mortgage Trust 2021-SAVEGlobal Credit Research – 17 Feb 2021$416.8 million of structured securities affectedNew York, February 17, 2021 — Moody’s Investors Service, (“Moody’s”) has assigned definitive ratings to eight classes of CMBS securities, issued by Wells Fargo Commercial Mortgage Trust 2021-SAVE, Commercial Mortgage Pass-Through Certificates, Series 2021-SAVE:Cl. A, Definitive Rating Assigned Aaa (sf)Cl. B, Definitive Rating Assigned Aa3 (sf)Cl. C, Definitive Rating Assigned A3 (sf)Cl. D, Definitive Rating Assigned Baa3 (sf)Cl. E, Definitive Rating Assigned Ba2 (sf)Cl. HRR, Definitive Rating Assigned Ba3 (sf)Cl. X-CP*, Definitive Rating Assigned Aa3 (sf)Cl. X-NCP*, Definitive Rating Assigned Aa3 (sf)* Reflects interest-only classesRATINGS RATIONALEThe certificates are collateralized by a single, floating-rate loan secured by the borrower’s fee simple interest in a portfolio of 41 grocery stores, two industrial properties and two office properties (the “portfolio”), all leased and occupied under a unitary master lease by Save Mart Supermarkets. Our ratings are based on the credit quality of the loan and the strength of the securitization structure.Moody’s approach to rating this transaction involved the application of both our Large Loan and Single Asset/Single Borrower CMBS methodology and our IO Rating methodology. The rating approach for securities backed by a single loan compares the credit risk inherent in the underlying collateral with the credit protection offered by the structure. The structure’s credit enhancement is quantified by the maximum deterioration in property value that the securities are able to withstand under various stress scenarios without causing an increase in the expected loss for various rating levels. In assigning single borrower ratings, we also consider a range of qualitative issues as well as the transaction’s structural and legal aspects.The portfolio is located across California and Nevada, in 13 Metropolitan Statistical Areas, primarily concentrated in California’s Central Valley and the Bay Area.The grocery stores (77.1% of NRA, 88.8% of in-place base rent) are under three retail banners: 20 properties are under the Lucky/Lucky California banner, a line of full service grocers with primary presence in California’s Bay Area; 13 properties are under the Save Mart banner, a line of full-service grocers with primary presence in California’s Central Valley area; and 8 properties are under the FoodMaxx banner, a discount grocer.The two industrial properties (20.0% of NRA, 8.8% of in-place base rent) are operated by Save Mart as their warehouse and distribution facilities. The two office properties (2.9% of NRA, 2.4% of in-place base rent) serve as Save Mart’s corporate headquarters.The securitization consists of a…

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