Fitch Ratings has affirmed 13 classes of
The Rating Outlook was revised to Stable from Negative on class D and remains Negative on class E.
RATING ACTIONS
Entity / Debt
Rating
Prior
COMM 2012-CCRE5
A-3 12623SAD2
LT
AAAsf
Affirmed
AAAsf
A-4 12623SAE0
LT
AAAsf
Affirmed
AAAsf
A-M 12623SAJ9
LT
AAAsf
Affirmed
AAAsf
A-SB 12623SAC4
LT
AAAsf
Affirmed
AAAsf
B 12623SAL4
LT
AAsf
Affirmed
AAsf
C 12623SAQ3
LT
Asf
Affirmed
Asf
D 12623SAS9
LT
BBB+sf
Affirmed
BBB+sf
E 12623SAU4
LT
BBsf
Affirmed
BBsf
F 12623SAW0
LT
CCCsf
Affirmed
CCCsf
Page
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VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Stable Loss Expectations; Expected Paydown: Fitch's loss expectations for the pool are relatively stable and in-line with Fitch's prior rating action. All remaining loans mature in 2022. The Stable Outlooks reflect increasing defeasance, as well as expected paydown from upcoming maturities.
Fitch's current ratings incorporate a base case loss of 8.40%. Ten loans (26.7% of pool) were designated Fitch Loans of Concern (FLOCs), including two (3.3%) in special servicing.
Regional Mall FLOC: Despite improving loan performance for the majority of the pool, performance and refinance concerns remain for the largest loan,
The YE 2021 servicer-reported net operating income (NOI) was 6% below YE 2020 and 33% below issuance. Collateral occupancy and servicer-reported NOI debt service coverage ratio (DSCR) for this IO loan were 79% and 1.44x at YE 2021, down from 83% and 1.52x at YE 2020, 90% and 1.81x at YE 2019 and 94% and 2.19x at issuance.
Non-collateral
Fitch's base case loss expectation of 55% reflects a 15% cap rate on the YE 2021 NOI and represents performance and imminent refinance concerns. The loan's interest rate is 4.625%.
Alternative Loss Consideration: Fitch performed a paydown scenario assuming that the specially serviced loans and
Increase in Credit Enhancement: Credit enhancement (CE) has improved since Fitch's last rating action due to continued scheduled amortization and increased defeasance. As of the
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Downgrades of the 'AAAsf' and 'AAsf' rated classes are not likely due to sufficient CE and expected continued amortization but would occur at the 'AAAsf' and 'AAsf' levels if interest shortfalls occur. Downgrades of classes C, D and PEZ would occur if loss expectations increase or loans fail to pay-off at maturity. Classes E, F and G would be downgraded if loans fail to refinance at maturity or as losses are realized.
Fitch has identified both a baseline and a worse-than-expected, adverse stagflation scenario based on repercussions from the
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Upgrades are unlikely due to performance and refinance concerns with
Best/Worst Case Rating Scenario
International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg
Additional information is available on www.fitchratings.com
PARTICIPATION STATUS
The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.
APPLICABLE CRITERIA
Global Structured Finance Rating Criteria (pub.
Structured Finance and Covered Bonds Counterparty Rating Criteria (pub.
APPLICABLE MODELS
Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).
CMBS Conduit Surveillance Model, v1.20.0 (1)
ADDITIONAL DISCLOSURES
Dodd-Frank Rating Information Disclosure Form
Solicitation Status
Endorsement Policy
ENDORSEMENT STATUS
COMM 2012-CCRE5EU Endorsed,UK Endorsed
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