NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 12 classes of Citigroup Commercial Mortgage Trust 2012 - GC8 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are based on the stable performance of the underlying collateral pool. As of the August 2014 distribution date, the pool's aggregate principal balance has been reduced by 2% to $1.02 billion from $1.04 billion at issuance. The pool has experienced no realized losses to date. Fitch has not designated any loans as Fitch Loan of Concern; no loans are delinquent or in special servicing. There is $10,580 of interest shortfalls currently affecting class G.
The largest loan of the pool (11%) is the Miami Center, which is secured by a 786,836 square foot (sf), class A office tower located on Biscayne Bay in downtown Miami. The property, which is 35-stories and includes an attached nine-story parking garage with 918 spaces, is the second largest office building in the state of Florida. Approximately 45% of the property's net rentable area (NRA) is leased to investment-grade tenants or major law firms. The servicer-reported occupancy as of first-quarter 2014 was 80.8% and the year-end 2013 DSCR was 1.44x.
The second largest loan, 222 Broadway (9.8%), is secured by a 786,552 sf office tower located in Manhattan's Financial District. Approximately 42.6% of the property's base rent comes from two investment grade tenants, JP Morgan Chase and Bank of America Merrill Lynch. Currently there are four tenants (16.3% of the NRA) that are either in a free rent or build-out period at the property; all are expected to begin paying full rent by July 2015. As per the property's rent roll, the May 2014 occupancy increased to 94.4% from 79.1% at issuance.
The third largest loan, 17 Battery Place South (8.9%), is secured by a 428,450 sf office tower located in Manhattan's Financial District, adjacent to Battery Park and overlooking New York Harbor. The 13-story office tower is part of a 31-story building, which also contains luxury rental apartments. The property's performance declined slightly for FYE 2013 due to Hurricane Sandy. The renovations caused by the storm took longer than expected at the property, especially to the underground parking garage and electrical equipment. The servicer-reported DSCR declined to 1.63x at year-end 2013 from 1.84x at year-end 2012. Additionally, as per the property's rent roll, occupancy was 86.8% as of Aug. 31, 2014.
The Rating Outlooks on all classes remain Stable. 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 overall portfolio-level metrics. Additional information on rating sensitivity is available in the report 'CGCMT Commercial Mortgage Trust 2012-GC8' (Sept. 6, 2012), available at www.fitchratings.com.
Fitch affirms the following classes as indicated:
--$38.3 million class A-1 at 'AAAsf'; Outlook Stable;
--$181.6 million class A-2 at 'AAAsf'; Outlook Stable;
--$27.7 million class A-3 at 'AAAsf'; Outlook Stable;
--$379.6 million class A-4 at 'AAAsf'; Outlook Stable;
--$80.3 million class A-AB at 'AAAsf'; Outlook Stable;
--$93.6 million class A-S at 'AAAsf'; Outlook Stable;
--$61.1 million class B at 'AA-sf'; Outlook Stable;
--$39 million class C at 'A-sf'; Outlook Stable;
--$45.5 million class D at 'BBB-sf'; Outlook Stable;
--$19.5 million class E at 'BBsf'; Outlook Stable;
--$19.5 million class F at 'Bsf'; Outlook Stable;
--$801.2 million8 class X-A at 'AAAsf'; Outlook Stable.
Fitch does not rate the class G and X-B certificates.
*Notional and interest-only.
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:
--'CGCMT Commercial Mortgage Trust 2012-GC8 -- Appendix' (Sept. 6, 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