Fitch Affirms FREMF 2012-K19 and Freddie Mac Pass-Through Certificates, Series K-019

NEW YORK–(BUSINESS WIRE)–

Fitch Ratings has affirmed six classes of FREMF 2012-K19 multifamily
pass-through certificates series and three classes of Freddie Mac
structured pass-through certificates, series K-019. A detailed list of
rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations of the FREMF 2012-K19 are based on the stable
performance of the underlying collateral pool. As of the July 2013
distribution date, the pool’s aggregate principal balance has been
reduced by 0.7% to $1.263 billion from $1.272 billion at issuance.
Seventy-eight of the remaining 83 loans (96% of the pool) reported at
least partial year 2012 financials. Fitch has designated one loan (2.3%)
as a Fitch Loan of Concern due to a decrease in occupancy.

The affirmations of the Freddie Mac K-019 certificates are the result of
the pass-through nature of the certificates, as they are dependent on
the underlying ratings of corresponding classes for FREMF 2012-K19.

The largest loan of the pool (8.46% of the pool), is secured by a
372-unit, class-A, midrise apartment building located in Brooklyn, NY.
The property, Brooklyn Gold, was developed in 2010 in conjunction with
an adjoining apartment building, 277 Gold, which is not part of the
collateral. The property’s occupancy increased slightly to 95.8% as of
February 2013 from 94.4% at issuance.

The next largest loan (4.19%), The Cork Factory, is a 297-unit apartment
complex located in Pittsburg, PA. The buildings were built in 1901, used
as a cork factory until 1974 and then converted into an apartment
building in 2006. The average in-place rent increased to $1,811 per
month as of year-end 2012 from $1,779 per month as of May 2012.

The third largest loan (2.87%), Aspen Place, is secured by a 416-unit
garden-style apartment complex in Aurora, IL, approximately 40 miles
west of Chicago. The property was built in 1988 and 51% of the units
were renovated between 2008 and 2010.

RATING SENSITIVITY

All classes maintain Stable Rating Outlooks. 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 ‘FREMF 2012-K19 Multifamily Mortgage Pass-Through Certificates and
Freddie Mac Structured Pass-Through Certificates, Series K-019’ (Oct.
10, 2012), available at www.fitchratings.com.

Fitch affirms the following classes as indicated:

FREMF 2012-K19 Multifamily Mortgage Pass-Through Certificates

–$185.2 million class A-1 at ‘AAAsf’, Outlook Stable;

–$885 million class A-2 at ‘AAAsf’, Outlook Stable;

–$66.8 million class B at ‘Asf’, Outlook Stable;

–$31.8 million class C at ‘BBB+sf’, Outlook Stable;

–$1.1 billion* class X1 at ‘AAA’, Outlook Stable;

–$1.1 billion* class X2-A at ‘AAA’; Outlook Stable.

Freddie Mac Structured Pass-Through Certificates, Series K-019

–$185.2 million class A-1 at ‘AAAsf’, Outlook Stable;

–$885 million class A-2 at ‘AAAsf’, Outlook Stable;

–$1.1 billion* class X1 at ‘AAAsf’, Outlook Stable.

*Notional amount and interest-only.

Of the FREMF 2012-K19, Fitch does not rate class D and the interest-only
classes X2-B and X3.

Of the Freddie Mac Structured Pass-Through Certificates, Series K-019,
Fitch does not rate the interest-only class X3.

A comparison of the transaction’s Representations, Warranties, and
Enforcement (RWE) mechanisms to those of typical RWEs for the asset
class is available in the following report:

–‘FREMF 2012-K19 Multifamily Mortgage Pass-Through Certificates and
Freddie Mac Structured Pass-Through Certificates, Series K-019′–
Appendix’ (Oct. 10, 2012).

Additional information on Fitch’s criteria for analyzing U.S. CMBS
transactions is available in the Dec. 18, 2012 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’ (May 24, 2013);

–‘U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC
Criteria’ (Dec. 18, 2012).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=798203

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.


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