NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) affirmed all of its outstanding ratings for the UBS-Barclays 2012-C3 transaction, a $1.1 billion CMBS multi-borrower transaction conduit collateralized by 85 fixed-rate commercial mortgage loans that are secured by 113 properties. For individual certificate ratings, please see the list below.
The transaction has exhibited stable performance since issuance. The WA KLTV (94.6%) and WA KDSC (1.59x) have remained relatively flat since issuance when they were 94.3% and 1.60x, respectively. As of the September 2013 pay-date, there are no delinquent or specially serviced loans. During our review of the transaction, we did not identify any as KBRA Loans of Concern (“K-LOCs”). K-LOCs are loans that are either in default or at heightened risk of default in the near term. The review included an examination of one loan on that appeared on the master servicer’s watchlist, which comprises 0.6% of the pool, as well as a review of the CREFC Investor Reporting Package files and other information provided by the servicer.
The top 10 loans, which comprise 45.7% of the pool, have generally posted stable performance since securitization and all were assigned a KBRA Performance Outlook (KPO) of Perform.
The review utilized property financial information obtained from the master servicer, Midland Loan Services, a Division of PNC Bank, National Association (Midland). Midland provided updated financial information for 91.4% of the pool. Of this information, December 2012 data was available for 56 loans (64.4% by balance), June 2013 data was available for ten loans (20.2%). The remaining information was comprised of March 2013 data (three loans, 5.8%) and September 2012 data (two loans, 1.0%). KBRA generally utilized 12 months of financial information to determine KNCF. In certain instances, KBRA annualized financial information for loans with partial year financial data. Once KNCF was determined, we conducted our credit modeling using the KBRA Multi-Borrower Model. The modeling produced credit enhancement levels that were compared to the transaction's capital structure, which resulted in the affirmation of all of the transaction's outstanding ratings.
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(1) Notional Class
Related Publications (available at https://www.krollbondratings.com):
CMBS Presale Report: UBS-Barclays 2012-C3
U.S. CMBS Multi-Borrower Rating Methodology, published February 23, 2012
CMBS Property Evaluation Guidelines, published June 10, 2011