DBRS Confirms Ratings of MSC Mortgage Securities Trust, 2012-C4

DBRS has today confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2012-C4 issued by MSC Mortgage Securities Trust, 2012-C4:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-S at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (sf)
-- Class D at BBB (high) (sf)
-- Class E at BBB (low) (sf)
-- Class F at BB (sf)
-- Class G at B (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)

All trends are Stable. DBRS does not rate the first lost piece, Class H.

The collateral consists of 38 fixed-rate loans secured by 77 commercial properties. As of the February 2013 remittance report, the pool has a balance of approximately $1.09 billion, representing a collateral reduction of approximately 0.98% since issuance in March 2012. Overall, the loans in the pool have reported stable performance since issuance. The transaction also benefits from loans structured with significant amortization, as 14.2% of the pool amortizes down by maturity.

At issuance, DBRS shadow-rated two loans, representing 14.95% of the current pool balance, investment grade. DBRS today confirmed that the performance of the loans remains consistent with investment-grade loan characteristics.

As of the February 2013 remittance report, there are no loans on the servicer’s watchlist or any delinquent or specially serviced loans.

The DBRS analysis included an in-depth review of the top 15 loans and the shadow-rated loans, which represents approximately 75.9% of the current pool balance. According to the most recent reporting, these loans had a weighted-average debt service coverage ratio (DSCR) of 1.73 times and a weighted-average debt yield of 12.2%. While these figures represent overall stable performance, it is of note that most of the loans are reporting only a partial-year figure that is being annualized by the servicer for the purposes of calculating the updated DSCR. As such, the figures are less reliable indicators of property performance than the true full-year figures, which should be available in the coming year.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction, including details on the largest loans in the pool and loans on the servicer’s watchlist. The February 2013 Monthly CMBS Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

Notes:
All figures are in U.S. dollars unless otherwise noted.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies.