NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 13 classes of COMM 2012-CCRE3 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 due to the stable performance of the underlying collateral pool since issuance. As of the August 2014 distribution date, the pool's aggregate principal balance has been reduced by 1.8% to $1.23 billion from $1.25 billion at issuance. Of the loans in the pool, 100% reported 2013 year-end financials and 83% of the pool reported partial year 2014 financials.
There is currently one loan in special servicing (1.4%) which serves as the only Fitch Loan of Concern.
The Rating Outlook for all classes remains 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 portfolio-level metrics. Additional information on rating sensitivity is available in the report 'WFRBS Commercial Mortgage Trust 2013-C16' (Jan. 16, 2014), available at 'www.fitchratings.com'.
The largest loan of the pool, 260 and 261 Madison Ave. (10.2% of the pool), is secured by two office properties totaling 923,277 square feet (sf) located in Midtown Manhattan of New York, NY. The loan has a $105 million pari-passu note which is in the COMM 2012-CCRE2 transaction. The property continues to perform as expected at underwriting with a 2013 net operating income (NOI) debt service coverage ratio (DSCR) of 1.76x and a year-to-date 2014 (as of March 2014) NOI DSCR of 1.82x. Occupancy remains stable at 90% as of March 2014.
The second largest loan (8.5%) is secured by the Crossgates Mall, a 1.7 million sf (1.3 million sf collateral) three-story enclosed mall located in Albany, NY. The property is anchored by Macy's (non-collateral), JC Penney, Dick's Sporting Goods, Burlington Coat Factory and Forever21 and includes an 18 screen Regal Cinema. The loan is split into five pari-passu notes with a total debt of $291 million among three transactions with two notes in the subject pool. The collateral is performing in line with underwritten expectations with occupancy of 91% (as of June 2014) and a 2013 net operating income debt service coverage ratio (NOI DSCR) of 1.34x.
The only specially serviced loan is a 331,361 sf urban office building, representing 1.4% of the pool, located in downtown Greenville, SC. The loan was transferred to special servicing in May 2014 due to a guarantor filing for personal bankruptcy. The bankruptcy was driven by an unrelated real estate deal in which the note holder of the defaulted loan was aggressively enforcing their collection rights. The subject collateral continues to perform well and in line with underwriting expectations. Occupancy as of March 2014 was 77% and the 2013 NOI DSCR reported was 1.93x. An updated appraisal was ordered due to the transfer to special servicing and indicated sufficient equity in the property. Fitch does not anticipate any losses on the loan.
Fitch affirms the following classes as indicated:
--$45.9 million class A-1 at 'AAAsf', Outlook Stable;
--$155.4 million class A-2 at 'AAAsf', Outlook Stable;
--$75.8 million class A-SB at 'AAAsf', Outlook Stable;
--$576.3 million class A-3 at 'AAAsf', Outlook Stable;
--$38 million class A-M at 'AAAsf', Outlook Stable;
--$24 million class B at 'AA-sf', Outlook Stable;
--$8.5 million class C at 'Asf', Outlook Stable;
--$150 million class PEZ at 'Asf', Outlook Stable;
--$26.6 million class D at 'A-sf', Outlook Stable;
--$43.8 million class E at 'BBB-sf', Outlook Stable;
--$21.9 million class F at 'BBsf', Outlook Stable;
--$20.3 million class G at 'Bsf', Outlook Stable;
--$985.4 million* class X-A at 'AAAsf'; Outlook Stable.
*Notional amount and interest only
Fitch does not rate the class H and X-B certificates. The class A-M, B, and C certificates may be exchanged for the class PEZ certificates, and the class PEZ certificates may be exchanged for the class A-M, B, and C certificates. Fitch rates the class PEZ equivalent to the first loss of the lowest rated class C exchangeable certificates.
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