CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed all classes of UBS-Barclays Commercial Mortgage Trust 2012-C4 commercial mortgage pass-through certificates, series 2012-C4. A detailed list of rating actions follows at the end of this release.
KEY RATINGS DRIVERS
The affirmations are based on overall stable performance of the underlying collateral pool. As of the November 2013 remittance, the pool's aggregate principal balance has been paid down by 0.8% to $1.444 billion from $1.456 billion at issuance. Fourteen of the top 15 loans (93% of the pool) reported partial year 2013 financials. The pool's overall net operating income has been stable with a 6.6% increase since issuance for loan's that reported information. There are no delinquent or specially serviced loans. Five loans were recently added to the servicer watchlist, however, the properties are performing in line with expectations.
All classes maintain Stable Outlooks. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics. Additional information on rating sensitivity is available in the report 'UBS-Barclays Commercial Mortgage Trust 2012-C4' (Dec. 4, 2012), available at www.fitchratings.com.
The largest loan of the pool (9.69%) is secured by, Marcourt Net Lease Hotel Portfolio, a portfolio of select service hotels diversified across nine states. The individual properties have a net lease agreement with Marriott International which is responsible for the maintenance and operation for each asset until the lease expiration date of January 2023. The hotels are located near major national and international airports and several locations have radius restrictions limiting future Courtyard properties from opening in close proximity to the collateral.
The second largest loan (8.88%) is secured by, KBR Tower, a 1,064,080 square foot (sf) class B office property located in the Houston, TX CBD. The majority of the building is leased to Kellogg Brown & Root Inc. on a long-term lease that does not expire until 2030. The tower benefits from being part of the Cullen Center Complex, which is a master-planned development consisting of office space, hotel rooms, parking, and public space. The complex is located in the primary employment center of Houston's CBD with convenient access to major freeways. The property is managed by Brookfield Office Properties, a diversified commercial real estate corporation with a significant presence in the Houston market.
The third largest loan (5.12%) is secured by, Visalia Mall, a 437,954 sf regional mall located in Visalia, CA, approximately 40 miles south of Fresno. The retail center benefits from limited competition and has a large trade area that encompasses a 25 mile radius. The limited competition has led to the mall's tenants experiencing 10% yearly sales growth for the past couple of years and management ability to increase the center's occupancy to 95% as of June 2013.
Fitch has affirmed the following classes as indicated:
UBS-Barclays Commercial Mortgage Pass-Through Certificates, Series 2012-C4
--$72.1 million class A-1 at 'AAAsf'; Outlook Stable;
--$73.3 million class A-2 at 'AAAsf'; Outlook Stable;
--$132 million class A-3 at 'AAAsf'; Outlook Stable;
--$150 million class A-4 at 'AAAsf'; Outlook Stable;
--$476 million class A-5 at 'AAAsf'; Outlook Stable;
--$104 million class A-AB 'AAAsf'; Outlook Stable;
--$145.6 million class A-S at 'AAAsf'; Outlook Stable;
--$1.152 billion* class X-A at 'AAAsf'; Outlook Stable;
--$134.7 million* class X-B at 'A-sf'; Outlook Stable;
--$69.1 million class B at 'AA-sf'; Outlook Stable;
--$65.5 million class C at 'A-sf'; Outlook Stable;
--$61.9 million class D at 'BBB-sf'; Outlook Stable;
--$25.5 million class E at 'BBsf'; Outlook Stable;
--$18.2 million class F at 'Bsf'; Outlook Stable.
*Notional amount and interest only
Fitch does not rate the $51 million class G.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (May 24, 2013);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012).
A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following reports:
--'UBS-Barclays Commercial Mortgage Trust 2012-C4' (Dec. 4 2012).
--'UBS-Barclays Commercial Mortgage Trust 2012-C4 -- Appendix' (Dec. 4, 2012).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
UBS-Barclays Commercial Mortgage Trust 2012-C4 (US CMBS)
UBS-Barclays Commercial Mortgage Trust 2012-C4 -- Appendix