Fitch to Rate COMM 2012-CCRE3 Commercial Mortgage Pass-Through Certificates; Presale Issued

CHICAGO--(BUSINESS WIRE)--Fitch Ratings has issued a presale report on COMM 2012-CCRE3 Commercial Mortgage Pass-Through Certificates.

Fitch expects to rate the transaction and assign Outlooks as follows:

--$68,444,000 class A-1 'AAAsf'; Outlook Stable;

--$155,419,000 class A-2 'AAAsf'; Outlook Stable;

--$75,783,000 class A-SB 'AAAsf'; Outlook Stable;

--$576,343,000 class A-3 'AAAsf'; Outlook Stable;

--$994,873,000c class X-A 'AAAsf'; Outlook Stable;

--$118,884,000ab class A-M 'AAAsf'; Outlook Stable;

--$75,085,000ab class B 'AA-sf'; Outlook Stable;

--$220,562,000ab class PEZ 'Asf'; Outlook Stable;

--$26,593,000ab class C 'Asf'; Outlook Stable;

--$26,592,000a class D 'A-sf'; Outlook Stable;

--$43,800,000a class E 'BBB-sf'; Outlook Stable;

--$21,899,000a class F 'BBsf'; Outlook Stable;

--$20,336,000a class G 'Bsf'; Outlook Stable.

a Privately placed pursuant to Rule 144A.

b Class A-M, class B and class C certificates may be exchanged for class PEZ certificates, and class PEZ certificates may be exchanged for class A-M, class B and class C certificates.

c Notional amount and interest only.

The expected ratings are based on information provided by the issuer as of Sept. 20, 2012. Fitch does not expect to rate the $256,540,606 interest-only class X-B or the $42,235,606 class H.

The certificates represent the beneficial ownership in the trust, primary assets of which are 50 loans secured by 74 commercial properties having an aggregate principal balance of approximately $1.25 billion as of the cutoff date. The loans were contributed to the trust by Cantor Commercial Real Estate Lending, L.P., German American Capital Corporation, and Ladder Capital Finance LLC.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 82.7% of the properties by balance, cash flow analysis of 85.4%, and asset summary reviews on 85.4% of the pool.

The transaction has a Fitch stressed debt service coverage ratio (DSCR) of 1.31 times (x), a Fitch stressed loan-to-value (LTV) of 95.7%, and a Fitch debt yield of 9.7%. Fitch's aggregate net cash flow represents a variance of 7.9% to issuer cash flows.

The master servicer and special servicer will be Wells Fargo Bank, National Association and Midland Loan Services, a Division of PNC Bank, National Association, rated 'CMS2' and 'CSS1', respectively, by Fitch.

The presale report is available at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions' (Aug. 8, 2012);

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (Sept. 26, 2011);

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'Criteria for Special-Purpose Vehicles in Structured Finance Transactions' (May 30, 2012);

--'U.S. Commercial Mortgage Servicer Rating Criteria' (Feb. 18, 2011);

--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec. 21, 2011);

--'Counterparty Criteria for Structured Finance Transactions' (March 12, 2012).

Applicable Criteria and Related Research: COMM 2012-CCRE3 (US CMBS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=690109

Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685995

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=688831

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

Criteria for Special-Purpose Vehicles in Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=680591

U.S. Commercial Mortgage Servicer Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005

Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=662869

Counterparty Criteria for Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678938

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