Fitch Affirms FREMF 2012-K20 & Freddie Mac Structured Pass-Through Certificates, Series 2012-K020

  Fitch Affirms FREMF 2012-K20 & Freddie Mac Structured Pass-Through
  Certificates, Series 2012-K020

Business Wire

NEW YORK -- August 29, 2013

Fitch Ratings has affirmed six classes of FREMF 2012-K20 multifamily mortgage
pass-through certificates and Freddie Mac structured pass-through
certificates, series 2012-K020 as follows:

FREMF 2012-K20 Multifamily Mortgage Pass-Through Certificates

--$189.2 million class A-1 at 'AAAsf'; Outlook Stable;

--$899.7 million class A-2 at 'AAAsf'; Outlook Stable;

--$1,097,500,000* class X1 at 'AAAsf'; Outlook Stable;

--$1,097,500,000* class X2-A at 'AAAsf'; Outlook Stable;

--$71.4 million class B at 'A-sf'; Outlook Stable;

--$32.5 million class C at 'BBBsf'; Outlook Stable.

Freddie Mac Structured Pass-Through Certificates, Series 2012-K020

--$189.2 million class A-1 at 'AAAsf'; Outlook Stable;

--$899.7 million class A-2 at 'AAAsf'; Outlook Stable;

--$1,098 billion* class X1 at 'AAAsf'; Outlook Stable.

*Notional amount and interest only.

Of the FREMF 2012-K20 multifamily mortgage pass-through certificates, Fitch
does not rate the interest-only class X2-B, the interest-only class X3 or
class D. In addition, of the Freddie Mac structured pass-through certificates,
series 2012-K020, Fitch does not rate interest-only class X3.

KEY RATING DRIVERS

The affirmations are based on the stable performance of the underlying
collateral pool. As of the August 2013 distribution date, the pool has no
specially serviced or delinquent loans and has experienced no realized losses
to date. As of the August 2013 distribution date, the pool's aggregate
principal balance has been reduced by 0.7% to $1.29 billion from $1.3 billion
at issuance. Fitch has designated one loan (1.4% of the pool) as a Fitch Loan
of Concern. The Fitch Loan of Concern is also the largest contributor to
expected losses and is secured by a 368-unit apartment complex built in 1996
and located in Plano, TX. Prior ownership had underfunded capital
improvements, and as a result the condition of the asset deteriorated. The
current borrower has decided not renew leases for troublesome residents and
has commenced physical improvements, however, in this process the NOI DSCR has
declined to 1.04x as of Year End (YE) 2012 from 1.36x at issuance based on
issuer's underwriting. Occupancy was 84% as of YE 2012.

RATING SENSITIVITY

The Rating Outlooks on classes A-1, A-2, B, C, and interest only class X1
remain Stable. Due to the recent issuance of the transactions and stable
performance, Fitch does not foresee positive or negative ratings migration
until a material economic or asset level event changes each transaction's
overall portfolio-level metrics. Additional information on rating sensitivity
is available in the 'FREMF 2012-K20 multifamily mortgage pass-through
certificates and Freddie Mac structured pass-through certificates, series
2012-K020' (September 4, 2012) presale report, available at
www.fitchratings.com.

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:

--'FREMF 2012-K20 Multifamily Mortgage Pass-Through Certificates and Freddie
Mac Structured Pass-Through Certificates, Series K-020 -- Appendix' (Sept. 4,
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=800816

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
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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,
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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.

Contact:

Fitch Ratings
Primary Analyst
Martin Nunnally
Associate Director
+1-212-908-0871
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Christopher Bushart
Senior Director
+1-212-908-0606
or
Media Relations:
Sandro Scenga
+1-212-908-0278
sandro.scenga@fitchratings.com