CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed all classes of Morgan Stanley Bank of America Merrill Lynch Trust 2012-C5 commercial mortgage pass-through certificates (MSBAM 2012-C5). A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The affirmations of MSBAM 2012-C5 are based on the stable performance of the underlying collateral pool. As of the May 2014 remittance, the pool had no delinquent, watch list or specially serviced loans. The pool's aggregate principal balance has been paid down by 1.8% to $1.33 billion from $1.35 billion at issuance. The year-end (YE) 2013 reported net operating income (NOI) for the pool was approximately 4% higher than the reported NOI at issuance.
The Rating Outlook for all classes remains Stable. No rating actions are expected unless there are material changes to property occupancies or cash flows, increased delinquencies, or additional loans transferred to special servicing. The pool has maintained performance consistent with issuance. Additional information on rating sensitivity is available in the report 'MSBAM 2012-C5' (Sept. 24, 2012), available at www.fitchratings.com.
The largest loan of the pool (13.4%) is collateralized by the Legg Mason Tower, a 24-story office building located in Baltimore, MD. The subject was developed in 2009 by H&S Properties Development Corporation, Inc. as part of a 70-acre mixed-use development known as Harbor East. The subject shares a five-story underground parking garage with the adjacent, newly built Four Seasons Hotel. Proceeds from the loan were used to refinance the $146 million construction loan. The tower serves as the headquarters for Legg Mason. The property was 86% occupied as of YE 2013, consistent with issuance.
The second largest loan (7.5%) is secured by Silver Sands Factory Stores, a 442,126 square foot (sf) retail outlet center located in Destin, FL. The subject was 97% leased as of YE 2013 to a diverse rent roll of nationally recognized retailers. No single tenant represents more than 4% of the rent. Proceeds from the loan were used by Simon Property Group to acquire a 50% interest in the property for $100 million, refinance an existing loan of $60 million and return cash of $20 million to the other 50% sponsor.
The third largest loan (6.6%) is secured by U.S. Bank Tower a 26-story, 520,227-sf office property located in downtown Denver, CO. The property offers two levels of subterranean private parking for tenants as well as public parking in an adjacent six-story parking structure, both of which are part of the loan collateral. U.S. Bank Tower has a diverse rent roll, including tenants in the financial services, government, legal, and oil and gas sectors, as well as major retailers, which occupy street-level space. This property was 88% leased as of YE 2013.
Fitch has affirmed the following classes as indicated:
--$61.2 million class A-1 at 'AAAsf'; Outlook Stable;
--$221.8 million class A-2 at 'AAAsf'; Outlook Stable;
--$149.6 million class A-3 at 'AAAsf'; Outlook Stable;
--$489.8 million class A-4 at 'AAAsf'; Outlook Stable;
--$59.2 million class A-S at 'AAAsf'; Outlook Stable;
--$33 million class B at 'AAsf'; Outlook Stable;
--$24.5 million class C at 'Asf'; Outlook Stable;
--$116.7 million class PST at 'Asf'; Outlook Stable;
--$1.053 billion interest-only class X-A at 'AAAsf'; Outlook Stable;
--$66 million interest only class X-B at 'AAsf'; Outlook Stable;
--$27.1 million class D at 'BBB+sf'; Outlook Stable;
--$49.1 million class E at 'BBB-sf'; Outlook Stable;
--$8.5 million class F at 'BBB-sf'; Outlook Stable;
--$18.6 million class G at 'BB+sf'; Outlook Stable;
--$23.7 million class H at 'Bsf'; Outlook Stable.
The class A-S, class B, and class C certificates will, at all times, each represent 50% of the outstanding principal balance of the class A-S, class B, and class C trust components, respectively. The class PST certificates will, at all times, represent beneficial ownership of 50% of the outstanding principal balance of the class A-S trust component, 50% of the outstanding principal balance of the class B trust component, and 50% of the outstanding principal balance of the class C trust component.
Fitch does not rate the interest-only class X-C or class J.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (May 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 2013);
--'MSBAM 2012 - C5' (Sept. 24, 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 report:
--'MSBAM 2012 - C5 --Appendix' (Sept. 24, 2012).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
MSBAM 2012 - C5
MSBAM 2012 - C5 -- Appendix