Kroll Bond Rating Agency Assigns Preliminary Ratings to BB-UBS Trust 2012-TFT

  Kroll Bond Rating Agency Assigns Preliminary Ratings to BB-UBS Trust
  2012-TFT

Business Wire

NEW YORK -- November 09, 2012

Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of
preliminary ratings for the BB-UBS Trust 2012-TFT transaction (see ratings
list below). BB-UBS Trust 2012-TFT is a CMBS large loan transaction that is
collateralized by three first mortgage loans with a combined principal balance
of $552.9 million jointly originated by Barclays Bank PLC and UBS Real Estate
Securities Inc.

The loans, which are not cross-collateralized or cross-defaulted, are each
secured by a super-regional mall that are owned and operated by General Growth
Properties, Inc. The largest of the three loans has a balance of $205.5
million and is secured by a first mortgage lien on the borrower’s fee and
leasehold interests in 667,561 square feet (sf) of the Tucson Mall, a 1.3
million sf property located in Tucson, Arizona. The second largest loan has a
balance of $202.0 million and is secured by a first mortgage lien on the
borrower’s fee and leasehold interest in 421,206 sf of Fashion Place, which is
a 1.0 million sf property located in Murray, Utah. The final loan that serves
as trust collateral has a balance of $145.4 million and is secured by first
mortgage lien on the borrower’s fee and leasehold interests in 416,516 million
sf of the Town East Mall, which is a 1.2 million sf property located in
Mesquite, Texas.

KBRA’s analysis of the transaction included a detailed evaluation of each
malls’ cash flows using our CMBS Property Evaluation Guidelines, and the
application of our CMBS Single Borrower & Large Loan Rating Methodology. The
results of the analysis produced an individual KNCF for each property. We
applied KBRA capitalization rates to each property’s KNCF to arrive at KBRA
value, the results of which are highlighted below.

  *Tucson Mall: an 8.50% cap rate to KNCF of $23.6 million, resulting in a
    KBRA value of $277.7 million, which is 30.6% off of the appraisal value.
  *Fashion Place: a 7.50% cap rate to KNCF of $20.8 million, resulting in a
    KBRA value of $277.8 million, which is 27.3% off of the appraisal value.
  *Town East Mall: an 8.25% cap rate to KNCF of $16.3 million, resulting in a
    KBRA value of $197.9 million, which is 22.1% off of the appraisal value.

In our analysis of the transaction, we also reviewed and considered third
party engineering and environmental reports, as well as our own on-site
inspections of the properties and the competition.

For complete details on the analysis, please see our Pre-Sale Report, entitled
BB-UBS 2012-TFT which was published today at www.krollbondratings.com.

The preliminary ratings are based on information known to KBRA at the time of
this publication. Information received subsequent to this release could result
in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: BB-UBS 2012-TFT

Class   Expected Rating   Balance (US$)
A       AAA (sf)          $ 363,413,000
X-A     AAA (sf)          $363,413,000*
X-B     AAA (sf)          $62,112,000*
B       AA (sf)           $ 62,112,000
C       A (sf)            $ 59,654,000
D       BBB (sf)          $ 36,387,000
E       BBB- (sf)         $ 31,346,000
TE      BB (sf)           $ 14,840,000

*Notional Amount

17g-7 Disclosure:

All Nationally Recognized Statistical Rating Organizations are required,
pursuant to SEC Rule 17g-7, to provide a description of a transaction’s
representations, warranties and enforcement mechanisms that are available to
investors when issuing credit ratings. KBRA’s disclosure for this transaction
can be found in the report entitled BB-UBS Trust 2012-TFT 17g7 Disclosure
Report.

Related publications:

CMBS Property Evaluation Guidelines, published June 10, 2011

CMBS Single Borrower & Large Loan Rating Methodology, published August 8, 2011

About Kroll Bond Rating Agency

Kroll Bond Rating Agency, Inc. (www.krollbondratings.com) is registered with
the SEC as a nationally recognized statistical rating organization (NRSRO).
Kroll Bond Rating Agency was established in 2010 to restore trust in credit
ratings by establishing new standards for assessing risk and by offering
accurate, clear, and transparent ratings.

Contact:

Kroll Bond Rating Agency
Michael Brown, 646-731-2307
mbbrown@krollbondratings.com
or
Keith Kockenmeister, 646-731-2349
kkockenmeister@krollbondratings.com
or
Josh Fischler, 646-731-2351
jfischler@krollbondratings.com
or
Joseph Kelly, 646-731-2365
jkelly@krollbondratings.com