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 April 2015 remittance, the pool had no delinquent or specially serviced loans. Six loans are on the watch list generally for either deferred maintenance or failure to provide required documentation. The pool's aggregate principal balance has been paid down by 3% to $1.31 billion from $1.35 billion at issuance. The YE 2013 reported net operating income (NOI) for the pool was approximately 5% higher than the reported NOI at issuance.
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 86.5% occupied as of YE 2014, consistent with issuance.
The second largest loan (7.5%) is secured by Silver Sands Factory Stores, a 442,126-sf retail outlet center located in Destin, FL. The subject was 100% leased as of Sept. 2014 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, Colorado. 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. U.S Bank occupies 27.6% of the space and has a lease which expires at the end of 2016. The property was 81.2% leased as of Sept. 2014, a drop from 89% at issuance.
RATINGS SENSITIVITIES
The Rating Outlook for all classes remains Stable. Fitch does not foresee positive or negative ratings migration unless a material economic or asset level event changes the underlying transaction's portfolio-level metrics. 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.
Fitch has affirmed the following classes as indicated:
--$45.6 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;
--$1.025 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. 2014);
--'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
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=983883
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.