NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 11 classes of COMM 2012-CCRE1 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
Fitch's affirmations are based on the stable performance of the underlying collateral pool. There have been no delinquent or specially serviced loans since issuance. Fitch modeled losses of 2.6% of the remaining pool; expected losses on the original pool balance total 2.4%. The pool has experienced no realized losses to date. Fitch has designated two (4.4%) Fitch Loans of Concern (FLOC) due to upcoming tenant rollover risk.
As of the March 2015 distribution date, the pool's aggregate principal balance has been reduced by 6% to $877 million from $932.8 million at issuance. Per the servicer reporting, one loan (0.5% of the pool) is defeased.
The largest loan in the pool (13.2%) is secured by a portion of a 1.7 million square foot (sf) regional mall (1.3 million-sf of collateral) located in Albany, NY. The mall is anchored by Macy's (non-collateral), J.C. Penney, Dick's Sporting Goods, and Best Buy. As of year-end (YE) 2014, the occupancy was 90.9% compared to 90.3% at issuance. The servicer-reported YE 2014 debt service coverage ratio (DSCR) was 1.49x, compared to 1.40x at issuance. Trailing Twelve Month Nov. 2014 reported in-line sales of $429 psf are slightly above the level at issuance.
The second largest loan in the pool (6.3%) is secured by a 227,707-sf office property located in San Leandro, CA. As of YE 2014, occupancy remained at 100% with limited lease rollover until 2017. The servicer-reported YE 2014 DSCR was 1.89x, compared to 1.76x at issuance.
The larger of the two FLOC in the pool (2.8%) is secured by a 119,524-sf office building with ground level retail, located in the Garment District of New York City. As of YE 2014, the occupancy was 90.9% compared to 98.6% at issuance. The servicer-reported YE 2014 debt service coverage ratio (DSCR) was 1.44x, the same as issuance. Approximately 31.3% and 14.7% in tenant rollover is scheduled for 2015 and 2016, respectively. Fitch will continue to monitor for leasing status updates.
Rating Outlooks on classes A-2 through G are Stable due to increasing credit enhancement from continued pay down and the stable performance of the collateral. The collateral has a weighted average Fitch stressed LTV of 75.1%. No upgrades or downgrades are expected unless operating performance of the loans change considerably.
Fitch affirms the following classes:
--$115.9 million class A-2 at 'AAAsf'; Outlook Stable;
--$409.2 million class A-3 at 'AAAsf'; Outlook Stable;
--$72.1 million class A-SB at 'AAAsf'; Outlook Stable;
--$692.8 million class X-A* at 'AAAsf'; Outlook Stable;
--$95.6 million class A-M at 'AAAsf'; Outlook Stable;
--$43.1 million class B at 'AAsf'; Outlook Stable;
--$32.6 million class C at 'Asf'; Outlook Stable;
--$50.1 million class D at 'BBB-sf'; Outlook Stable;
--$2.3 million class E at 'BBB-sf'; Outlook Stable;
--$14 million class F at 'BBsf'; Outlook Stable;
--$15.2 million class G at 'Bsf'; Outlook Stable.
The class A-1 certificates have paid in full. Fitch does not rate the $184.2 million interest-only class X-B, or the $26.8 million class H.
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:
--'COMM 2012-CCRE1 -- Appendix' (July 17, 2012).
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 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' (Mar. 31, 2015);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria