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Kroll Bond Rating Agency (KBRA) affirmed all of its outstanding ratings for the UBS-Barclays 2012-C2 transaction, a $1.2 billion CMBS multi-borrower transaction conduit collateralized by 54 fixed-rate commercial mortgage loans that are secured by 83 properties. For individual certificate ratings, please see the list below.
The transaction has exhibited stable performance since issuance. The WA KLTV (94.1%) has modestly improved and WA KDSC (1.75x) has remained flat since issuance when they were 94.3% and 1.75x, respectively. As of the July 2013 pay date, there are no delinquent or specially serviced loans. During our review of the transaction, we did not identify any as KBRA Loans of Concern (“K-LOCs”). K-LOCs are loans that are either in default or at heightened risk of default in the near term. The review included an examination of three loans that appear on the master servicer’s watchlist, which comprise 4.7% of the pool, as well as a review of the CREFC Investor Reporting Package files and other information provided by the servicer.
The top 10 loans, which comprise 62.9% of the pool, have generally posted stable performance since securitization and all were assigned a KBRA Performance Outlook (KPO) of Perform.
The review utilized property financial information obtained from the master servicer, Wells Fargo Bank, National Association (Wells Fargo). Wells Fargo provided updated financial information for 92.7% of the pool. Of this information, December 2012 data was available for 15 loans (24.5% by balance). The remaining information was comprised of March 2013 data (32 loans, 58.3%) and September 2012 data (three loans, 3.6%). KBRA generally utilized 12 months of financial information to determine KNCF. In certain instances, KBRA annualized financial information for loans with partial year financial data. Once KNCF was determined, we conducted our credit modeling using the KBRA Multi-Borrower Model. The modeling produced credit enhancement levels that were compared to the transaction's capital structure, which resulted in the affirmation of all of the transaction's outstanding ratings.
|Class||Rating||Current Balance (US$)||Rating Action|
(1) Notional Amount
Related Publications (available at https://www.krollbondratings.com):
UBS-Barclays 2012-C2 Surveillance Report
CMBS Presale Report: UBS BB 2012-C2
U.S. CMBS Multi-Borrower Rating Methodology, published February 23, 2012
CMBS Property Evaluation Guidelines, published June 10, 2011