CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 11 classes of UBS Commercial Trust 2012-C1 (UBS 2012-C1) commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The affirmations of UBS 2012-C1 are based on the stable performance of the underlying collateral pool. As of the March 2013 remittance, the pool had no delinquent, watch list or specially serviced loans. The pool's aggregate principal balance has been paid down by 0.8% to $1.32 billion from $1.33 billion at issuance. As the deal was issued in second quarter 2012, full year reporting was due as of March 31, 2013. As such there is limited updated performance information available for the collateral.
RATINGS SENSITIVITY
All classes maintain Stable 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 report UBS Commercial Mortgage Trust 2012 - C1' (April 19, 2012), available at www.fitchratings.com.
The largest loan of the pool (9.1%) is collateralized by a 315-key luxury boutique hotel located in Manhattan. The loan is secured by the fee and leasehold interest in the property, developed as the Dream Downtown Hotel, which is subject to net leases. The leases have terms of 101 years and are supported by hotel operations which run at a multiple of 1.2 times the net lease payment at closing. In the event of a default under the net lease payments, the sponsor may take possession of hotel operations.
The second largest loan (7.1%) is secured by the Civic Opera House, a 44-story, 916,258 sf historically landmarked office building located in the Chicago CBD. The loan proceeds, along with an additional equity contribution from the borrower, were used for the acquisition of the property and to fund upfront reserves and closing costs. At issuance the property was 74.8% occupied. Occupancy had been adversely affected by a multi-year road construction project in front of the property which was completed in 2011. The area is infill with proximity to interstates, trains, and other public transportation. The surrounding area is characterized primarily by office space.
The third largest loan (6.7%) is collateralized by Trinity Centre, made up of two office buildings in Manhattan's Financial District, totaling 900,744 square feet. The two prewar buildings have been designated as New York City landmarks and have been fully restored and renovated with updated electrical, mechanical, and telecommunications systems. The property was 85% occupied as of September 2012 by a diverse roster of over 100 tenants. The loan was used to refinance the previous debt and the sponsors contributed approximately $6.4 million of additional equity at closing. In addition to the first mortgage loan, there is an $18 million senior mezzanine loan as well as a junior mezzanine loan for $7 million, bringing the total debt stack to $185 million.
Fitch has affirmed the following classes as indicated:
--$61,830,028 class A-1 at 'AAAsf'; Outlook Stable;
--$105,671,000
class A-2 at 'AAAsf'; Outlook Stable;
--$657,155,000 class A-3 at
'AAAsf'; Outlook Stable;
--$96,008,000 class A-AB at 'AAAsf';
Outlook Stable;
--$1,044,783,000 class X-A at 'AAAsf'; Outlook
Stable;
--$113,130,000 class A-S at 'AAAsf'; Outlook Stable;
--$66,547,000
class B at 'AAsf'; Outlook Stable;
--$49,910,000 class C at 'Asf';
Outlook Stable;
--$74,865,000 class D at 'BBB-sf'; Outlook Stable;
--$26,618,000
class E at 'BBsf'; Outlook Stable;
--$23,292,000 class F at 'Bsf';
Outlook Stable.
Fitch does not rate the interest-only class X-B or the $44,919,174 class G.
Additional information is available at www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Structured
Finance Rating Criteria' (June 6, 2012);
--'U.S. Fixed-Rate
Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012);
--'UBS
Commercial Mortgage Trust 2012 - C1' (April 19, 2012);
--'UBS
Commercial Mortgage Trust 2012 - C1 Representations and Warranties
Presale Appendix' (April 19, 2012).
Applicable Criteria and Related Research
U.S. Fixed-Rate
Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969
UBS
Commercial Mortgage Trust 2012 - C1 (US CMBS)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=677049
UBS
Commercial Mortgage Trust 2012 - C1 -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=677404
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