Fitch Affirms All Classes of 7 World Trade Center

CHICAGO--()--Fitch Ratings has affirmed all classes of New York Liberty Development Corporation Liberty Revenue Refunding Bonds, Series 2012 (7 World Trade Center Project) And 7 WTC Depositor, LLC Trust 2012-WTC as follows:

--$18,475,000 class 1 maturing on Sept. 15, 2028 at 'AAAsf'; Outlook Stable;

--$19,410,000 class 1 maturing on Sept. 15, 2029 at 'AAAsf'; Outlook Stable;

--$20,390,000 class 1 maturing on Sept. 15, 2030 at 'AAAsf'; Outlook Stable;

--$21,425,000 class 1 maturing on Sept. 15, 2031 at 'AAAsf'; Outlook Stable;

--$22,510,000 class 1 maturing on Sept. 15, 2032 at 'AAAsf'; Outlook Stable;

--$73,670,000 class 1 maturing on Sept. 15, 2035 at 'AAAsf'; Outlook Stable;

--$137,220,000 class 1 maturing on Sept. 15, 2040 at 'AAAsf' ; Outlook Stable;

--$108,000,000 class 2 at 'Asf'; Outlook Stable;

--$29,190,000 class 3 at 'BBBsf'; Outlook Stable;

--$114,485,000 class A* at 'BBB-sf'; Outlook Stable;

--$10,515,000 class B* at 'BB+sf'; Outlook Stable.

* Privately placed pursuant to Rule 144A.

KEY RATING DRIVERS

The affirmations and Stable Outlooks are the result of stable performance and limited 2012 reporting. As of the six months ending Sept. 30, 2012 the servicer-reported net cash flow DSCR was 1.25x compared to a 1.23x underwritten at issuance.

RATING SENSITIVITIES

All classes maintain stable outlooks. No rating actions are expected unless there are material changes in property occupancy or cash flow. The property performance is consistent with issuance.

The transaction represents a securitization of the beneficial leasehold mortgage interest in 7 World Trade Center, a 52-story, class A office building, totaling approximately 1.7 million sf and located on the north end of the World Trade Center site in the Downtown submarket of New York City. Proceeds of the loans were used to refinance the prior liberty bonds, pay closing costs, and return preferred equity investment to the sponsor.

The bonds and the CMBS certificates follow a sequential pay structure. The total loan includes $575.3 million of liberty bonds and a CMBS loan secured by a mortgage backed by two cross-defaulted loans on 7 WTC. The senior loan is a $450.3 million tax-exempt liberty bond financing designated loan and the junior loan is a $125 million CMBS loan. The liberty bonds loan and the CMBS loan are administered pursuant to a traditional CMBS servicing agreement. The liberty bonds loan has a priority in payment over the CMBS certificates. Both loans are to be cross-defaulted.

The liberty bonds and CMBS certificates are scheduled to amortize fully by their respective maturity dates following an initial interest-only periods. The CMBS bonds are interest-only for the first year followed by a six year full amortization. The Liberty Bonds are interest-only for 16 years followed full amortization by 2044.

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:

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

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (Sept. 21, 2012).

Applicable Criteria and Related Research

Global Structured Finance Rating Criteria

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

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

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

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Contacts

Fitch Ratings
Primary Analyst
R. Brook Sutherland, +1-312-606-2346
Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
R. Brook Sutherland, +1-312-606-2346
Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com