DBRS Confirms All Classes of FREMF 2012-K22 Mortgage Trust, Series 2012-K22

DBRS has today confirmed all classes of FREMF 2012-K22 Mortgage Trust as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class X1 at AAA (sf)
-- Class X2-A at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (sf)

The trends on all classes are Stable.

The pool consists of 81 fixed-rate loans secured by 81 multifamily properties. The transaction has experienced 0.4% of collateral reduction since issuance as a result of amortization, with all of the original 81 loans remaining in the pool. The pool benefits from strong origination practices and strong sponsorship, with many borrowers being repeat borrowers of Freddie Mac. As of the October 2013 remittance, the weighted-average debt service coverage ratio (DSCR) and weighted-average debt yield for the pool are 1.5x and 8.5%, respectively. In comparison, the weighted-average DBRS DSCR and the weighted-average DBRS debt yield at issuance were 1.6x and 9.1%, respectively. This transaction closed in December 2012, and it is likely that financial statements do not reflect a full year of servicer reporting.

There is currently one loan on the watchlist. Lakewood Green Apartments (Prospectus ID#48, 0.9% of the current pool balance) was added to the watchlist with the October 2013 remittance after the property was damaged by a hailstorm. The asset is located in Dallas, Texas. The servicer will release funds once repairs have been executed and evidenced by the borrower. DBRS will monitor this loan for further developments.

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 remaining loans in the pool. The October 2013 Monthly 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.

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.

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