NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 15 classes from Morgan Stanley Capital I, Inc. MSBAM 2012-C6 commercial mortgage pass-through certificates (MSBAM 2012-C6). A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmation of MSBAM 2012-C6 is based on the stable performance of the underlying collateral pool. As of the August 2014 remittance, the pool's aggregate principal balance has been paid down by 1.9% to $1.1 billion from $1.12 billion at issuance. There are no loans in special servicing. Fitch has designated one loan (0.5%) as a Fitch Loan of Concern.
The largest loan of the pool (11.4%) is collateralized by 1880 Broadway/15 Central Park West Retail, a 84,240 square foot (sf) retail condominium unit located on the eastern side of Broadway between West 61st Street and West 62nd Street in Manhattan's Upper West Side Neighborhood. The property is 100% occupied and the major tenants that occupy the space are Best Buy (54.4% of net rentable area [NRA]), West Elm (30.3% of NRA), and JP Morgan Chase (12.9% of NRA). Above the ground floor retail collateral are luxury residential units that are not part of the collateral. As of year-end 2013, the servicer reported net operating income (NOI) debt service coverage ratio (DSCR) was 1.90x.
The second largest loan in the pool (6.8%) is collateralized by the Chelsea Terminal Building, a 1,054,442 sf series of contiguous mixed-use buildings located in Manhattan's Chelsea neighborhood. The property is located two blocks west of the elevated Highline Park and two blocks south of the Javits Convention Center and Hudson Yards redevelopment project. The building was mainly being used as mini-storage for many years before being redeveloped to a mixed-use office and retail product in recent years. The property had substantial damage from Hurricane Sandy which included electrical damage and loss of equipment due to the flooding. According to the servicer, the borrower has completed a substantial portion of the insurance loss repairs.
The third largest loan of the pool (6.8%) is collateralized by the Hyatt Regency Austin, a 448 room full service hotel located in downtown Austin, TX. The subject is located along the south side of Lady Bird Lake near downtown Austin, with proximity to the Austin CBD, the University of Texas, and Zilker Park, home to a variety of popular music and arts festivals. As of year-end 2013, the servicer reported NOI DSCR is 2.55x and the March 2014 occupancy was 82.2%.
The Rating Outlooks remain Stable for all classes. No rating actions are expected unless there are material changes to property occupancies or cash flows, increased delinquencies, or any loans transferred to special servicing. The pool has maintained performance consistent with issuance. Initial Key Rating Drivers and Rating Sensitivities are further described in the new issue report Morgan Stanley Bank of America Merrill Lynch Trust 2012-C6' (Nov. 20, 2012), available at www.fitchratings.com.
Fitch affirms the following classes as indicated:
--$44.1 million class A-1 at 'AAAsf', Outlook Stable;
--$236 million class A-2 at 'AAAsf', Outlook Stable;
--$72 million class A-3 at 'AAAsf', Outlook Stable;
--$411.4 million class A-4 at 'AAAsf', Outlook Stable;
--$98.3 million class A-S at 'AAAsf', Outlook Stable;
--$50.6 million class B at 'AAsf', Outlook Stable;
--$43.5 million class C at 'Asf', Outlook Stable;
--$192.4 million class PST at 'Asf', Outlook Stable;
--$21.1 million class D at 'BBB+sf', Outlook Stable;
--$40.7 million class E at 'BBB-sf', Outlook Stable;
--$9.8 million class F at 'BBB-sf', Outlook Stable;
--$19.7 million class G at 'BBsf', Outlook Stable;
--$12.6 million class H at 'Bsf', Outlook Stable;
--$861.8 million class X-A at 'AAAsf'; Outlook Stable;
--$94.1 million class X-B at 'Asf'; Outlook Stable.
The class PST certificates are exchangeable for the class A-S, class B, and class C certificates.
Fitch does not rate the class J and X-C certificates.
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:
--'Morgan Stanley Bank of America Merrill Lynch Trust 2012-C6 --Appendix' (Nov. 20, 2012).
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:
Structured Finance >> CMBS >> Criteria Reports
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria