Fitch Affirms Fairway Outdoor Funding, LLC Secured Billboard Rev Notes, Series 2012-1

NEW YORK--()--Fitch Ratings has affirmed the following classes of Fairway Outdoor Funding, LLC secured billboard revenue notes, series 2012-1:

--$10 million class A-1* at 'A-sf'; Outlook Stable;

--$165.7 million class A-2 at 'A-sf'; Outlook Stable;

--$72 million class B at 'BB-sf'; Outlook Stable.

*Variable funding note.

KEY RATING DRIVERS

The affirmations are due to stable performance of the underlying pool. As Fitch monitors the transaction, the possibility of upgrades may be limited due to the provision that allows additional notes.

As of September 2014 remittance date, the collateral pool represented 19,858 billboard faces and includes a portfolio of 170 digital faces. The average portfolio occupancy (percentage of time the displays contained paid-for advertisements) reported was 62.9%. The reported trailing 12-month (TTM) eligible net cash flow as of the end of August 2014 was $39.8 million. The Fitch adjusted net cash flow was approximately $36 million with a stressed DSCR of 1.38x and debt multiple of 6.9x.

The notes are secured by a security interest in all membership interests and limited partnership interests in the issuer and a guaranty of all of the issuer's obligations by the issuer's subsidiaries. Additionally the notes are secured by a first perfected security interest in all of the issuer's right, title, and interest in and to the billboard assets as well as all income, payments and proceeds of any of the foregoing and all accessions to, substitutions and replacements for, and rents, profits, products, insurance proceeds, confiscation and/or condemnation awards, and any other proceeds from the disposition of any of the foregoing.

Billboard assets include all outdoor display assets owned by the issuer to advertise products and services, which assets include, but are not limited to all billboards, digital billboards, permits, licenses, contracts, ground leases, real property, insurance proceeds, and structures as well as any amounts generated from the liquidated assets.

RATING SENSITIVITIES

The Rating Outlooks for all classes remain Stable due to the stable performance of the pool since issuance. Additional information on rating sensitivity is available in the report 'Fairway Outdoor Funding, LLC Secured Billboard Revenue Notes, Series 2012-1 (US CMBS)' (Oct. 17, 2012), available at www.fitchratings.com.

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: 'Fairway Outdoor Funding, LLC Secured Billboard Revenue Notes, Series 2012-1 -- Appendix' (Oct. 17, 2012).

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (Sept. 19, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=772328

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=889714

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.

Contacts

Fitch Ratings
Primary Analyst
Jeffrey Diliberto, +1 212-908-9173
Director
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1 212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Jeffrey Diliberto, +1 212-908-9173
Director
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1 212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com