CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed all classes of UBS-Barclays Commercial Mortgage Trust 2012-C2 (UBSBB 2012-C2) commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The affirmations of UBSBB 2012-C2 are based on the stable performance of the underlying collateral pool. As of the May 2014 remittance, the pool had no delinquent or specially serviced loans. The pool's aggregate principal balance has been paid down by 1.9% to $1.192 billion from $1.216 billion at issuance. Less than 1% of the pool has not reported full year 2012 or 2013 financials. For those loans without updated financials, Fitch applied a haircut to the issuance cash flow for modeling purposes. Fitch modeled cash flow was approximately 8% higher than Fitch issuance cash flow.
RATINGS SENSITIVITY
The Rating Outlooks remain Stable for all classes. No rating actions are expected unless there are material changes to property occupancies or cash flows. The pool has maintained performance consistent with issuance. Additional information on rating sensitivity is available in the report 'UBS-Barclays Commercial Mortgage Trust 2012-C2 ' (July 23, 2012), available at www.fitchratings.com.
The only loan in the pool with significant performance variations form issuance was the $26.5 million National Hotel Miami Beach (2.2%), which is on the servicer watchlist. The property underwent a significant renovation project over the past two years which is expected to result in improved performance. In July 2013, The City of Miami closed the Hotel as it discovered during the inspections that the work approved by the City through the permit process was different than the actual work performed by the General Contractor(GC). Per the borrower, the GC did not seek new permits to reflect the actual work. The property partially reopened in August 2013, the historic tower reopened in January 2014, and the remaining 15 rooms were scheduled to be completed in April 2014. Fitch requested first quarter 2014 financials on the property via the 17g-5 provider several weeks ago, but has not yet received any updated performance information. YE 2013 NOI was negative, but the property should benefit from reopening and renovation in 2014.
The largest loan of the pool (11.9%) is collateralized, a 874,426-sf, 35-story building located in New York, NY at the intersection of William Street and John Street. The property is located five blocks north of the New York Stock Exchange and has direct access to the newly constructed Fulton Street Transit Center and the World Trade Center Path Station in the Financial District neighborhood. The property was 95% occupied as of December 2013. The property has new sponsorship after a joint venture between Savanna Real Estate and KBS Realty Advisors closed on the purchase of the property for $261.1 million in May 2014.
The second largest loan (8%) is secured by the Crystal Mall, a 783,280-sf (518,480 sf collateral) two-story enclosed regional mall in Waterford, CT. The property was constructed in 1983-1984. The mall has four anchors. Macy's and Sears are not part of the collateral. JCPenney (17.1% of collateral NRA) and Bed Bath & Beyond/Christmas Tree Shops (12.7% of NRA) are part of the collateral. Simon Property Group, the loan sponsor, developed Crystal Mall and completed an $8.6 million renovation in June 2012. As of YE 2013 the servicer-reported net operating income was in line with Fitch's net operating income at issuance.
Fitch has affirmed the following classes:
--$56.8 million class A-1 at 'AAAsf', Outlook Stable;
--$174.8 million class A-2 at 'AAAsf', Outlook Stable;
--$116.3 million class A-3 at 'AAAsf', Outlook Stable;
--$479.7 million class A-4 at 'AAAsf', Outlook Stable;
--$94.2 million class A-S-EC at 'AAAsf', Outlook Stable;
--$63.8 million class B-EC at 'AAsf', Outlook Stable;
--$45.6 million class C-EC at 'Asf', Outlook Stable;
--$203.7 million class EC at 'Asf', Outlook Stable;
--$24.3 million class D at 'BBB+sf', Outlook Stable;
--$47.1 million class E at 'BBB-sf', Outlook Stable;
--$22.8 million class F at 'BBsf', Outlook Stable;
--$24.3 million class G at 'Bsf', Outlook Stable;
--$945.5 million class X-A at 'AAAsf'; Outlook Stable;
The class A-S-EC, class B-EC and class C-EC certificates may be exchanged for class EC certificates, and class EC certificates may be exchanged for class A-S-EC, class B-EC and class C-EC certificates. As of the June 2013 remittance all of the Class A-S-EC, class B-EC and class C-EC certificates had been exchanged for Class EC certificates.
Fitch does not rate the interest-only class X-B or class H certificates.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (May 20, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013);
--'UBS-Barclays Commercial Mortgage Trust 2012-C2' (July 23, 2012).
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:
--'UBS-Barclays Commercial Mortgage Trust 2012-C2 -- Appendix' (July 23, 2012).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961
UBS-Barclays Commercial Mortgage Trust 2012-C2
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684225
UBS-Barclays Commercial Mortgage Trust 2012-C2 -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684226
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=833195
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