Fitch Ratings has affirmed the distressed ratings of seven classes of Wachovia Bank Commercial Mortgage Trust commercial mortgage pass-through certificates series 2005-C17. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are the result of consistent high loss expectations compared with Fitch's last review. While credit enhancement is high, the pool is concentrated with only 11 loans remaining and significant losses are expected.

The transaction has experienced 98.3% of collateral reduction since issuance, which includes $69.3 million (3.2% of the original collateral balance) in realized losses to date. There are 11 loans remaining in the pool, one of which (7.1% of pool balance) is specially serviced. Two loans (8.9% of the pool) are defeased. Interest shortfalls currently reach up to class J.

The largest contributor to expected losses is the largest loan, Westland Mall (36.4% of collateral balance). This loan is not currently in special servicing but was previously modified and transferred back to the master servicer in June 2014. The loan is secured by an enclosed 338,478 square foot (sf) regional mall in Burlington, IA near the Illinois and Missouri borders. The mall is anchored by Younkers, Marshall's, and CEC Theatres. Two anchor spaces, previously occupied by J. C. Penney and McGregor's Furniture, are currently vacant. McGregor's Furniture vacated at lease expiration in August 2014. Although J. C. Penney continues to pay rent on its space which is leased through March 2017, it closed its store in April 2015. There is substantial upcoming rollover risk, including the largest remaining tenant, Younkers, which has a January 2017 lease expiration. Additionally, many of the inline tenants are considered temporary, according to the borrower's rent roll. Per the December 2015 rent roll provided by the servicer, the economic occupancy was 82.6%, while the physical occupancy was 58%. Terms of the loan's 2014 modification included an extension of the maturity date from January 2015 to January 2018, a conversion of the amortization schedule to interest-only payments, and a reduction in the accrued interest rate. The original trust loan was also bifurcated into an A/B note structure, with a $10.5 million A-note and a $6.4 million B-note.

The second largest contributor to expected losses is The Clarion Inn of Sun Valley loan (7.1% of collateral balance). The loan is secured by a 58-key hotel property in Ketchum, ID, near the Bald Mountain ski resort. The property originally transferred to special servicing in 2010 due imminent maturity default. The borrower requested a modification but ultimately foreclosure was filed. The borrower filed for bankruptcy protection and the loan was modified and eventually defaulted again. The borrower sought bankruptcy protection a second time but proceedings were ultimately dismissed and the property became real estate owned (REO) March 31, 2016. The servicer is placing the property for sale via auction this month.

The third largest contributor to expected losses is the Shopko Plaza loan (16.1% of collateral balance). The loan is secured by a 129,000 sf retail property in Peoria, IL. The largest tenant, Shopko, which accounts for 87.1% of net rentable area (NRA), has been dark since 2007. The loan was structured with a March 2015 anticipated repayment date and the borrower previously indicated that it would not pay off the loan. Shopko has a lease which runs through October 2020. The loan's final maturity date is in

RATING SENSITIVITIES

Additional downgrades to the distressed ratings are possible if expected losses increase, primarily on the two larger loans with performance issues: Westland Mall and Shopko Plaza. Further downgrades are expected as losses are realized. Although unlikely, upgrades are possible in the event of improved loan level performance or less than expected realized losses.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch affirms the following classes and assigns RE as indicated:

--$28.2 million class H at 'CCCsf', RE 100%;

--$6.8 million class J at 'CCsf', RE 95%;

--$10.2 million class K at 'Csf' ', RE 0%;

--$2.2 million class L at 'Dsf', RE 0%;

--$0 class M at 'Dsf', RE 0%;

--$0 class N at 'Dsf', RE 0%;

--$0 class O at 'Dsf', RE 0%.

The class A-1, A-2, A-3, A-4, A-1A, A-PB, A-J, B, C, D, E, F, and G certificates have paid in full. Fitch does not rate the class P certificate. Fitch previously withdrew the ratings on the interest-only class X-P and X-C certificates.