OREANDA-NEWS. Fitch Ratings has affirmed 12 classes of Deutsche Bank Securities, Inc.'s COMM 2012-CCRE4 commercial mortgage pass-through certificates, series 2012-CCRE4. A detailed list of rating actions follows at the end of this press release.


The affirmations are based on the stable performance of the underlying collateral pool. The pool's aggregate principal balance has been reduced by 4.5% to $1.06 billion from $1.11 billion at issuance. Three loans (6.4% of the pool) are defeased, two of which are top 15 loans. There is one specially serviced loan (1.1%) as of the August 2016 distribution date. There are two Fitch Loans of Concern (1.8%), one of which is the aforementioned specially serviced loan.

There was one variance from criteria related to class C. The surveillance criteria indicated that a rating upgrade above the recommended rating was possible for the class. Fitch has determined an upgrade is not warranted at this time, although the Positive Outlook indicates future upgrades are likely.

Previously in December 2014, three specially serviced loans liquidated; the loans were cross-collateralized and minimal losses ($87 thousand) were incurred relative to the overall pool balance.

The largest contributor to modeled losses is the specially serviced loan, TownePlace Suites Odessa (1.1%). The loan is securitized by a 108-room extended stay hotel located in Odessa, TX (West Texas). The loan transferred to special servicing in April 2016 due to payment default. In conjunction with the significant decline in oil prices, the property, which is located in a region of West Texas that has a strong presence of oil related businesses, has experienced far less room demand over the last year than in previous years. Revenues declined substantially in 2015 resulting in a 1.10x DSCR as of year-end (YE) 2015, down from 2.51x as of YE 2014. The servicer is currently discussing a potential resolution with the borrower.

The second largest contributor to modeled losses (#3 loan in the pool) is the Fashion Outlets of Las Vegas (6.5%). The loan is securitized by a 375,722 square foot (sf) enclosed outlet center located in Primm, NV (Las Vegas MSA) roughly 40 miles south of the Las Vegas Strip in close proximity to the NV/CA border. As of YE 2015, occupancy and DSCR were 90% and 1.80x, respectively; however, occupancy declined to 77% as of March 2016. Neiman Marcus Last Call was the largest tenant at issuance (previously 6.7% NRA) but vacated upon lease expiration in January 2016. Per the servicer, the borrower has executed a lease with H&M for the space formally occupied by Neiman Marcus Last Call, but to date an updated rent roll has not been received. Near-term 2016/2017 rollover risk remains from smaller in-line tenants. Fitch will continue to monitor. The loan is scheduled to mature in November 2017.


The Positive Outlooks on classes B, C, and X-B reflect improvement in cash flow performance for several of the larger loans, anticipated paydown from amortization, and an increase in defeasance. Additionally, should the loans with 2017 maturities, particularly the Fashion Outlets of Las Vegas loan payoff at maturity, upgrades are likely. Given the overall stable to improving performance across the pool, negative ratings migration is not expected in the near term unless a material economic or asset level event changes the transactions overall stable metrics.


No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following classes and revised Rating Outlooks as indicated:

--$9.4 million class A-1 at 'AAAsf', Outlook Stable;

--$148.7 million class A-2 at 'AAAsf', Outlook Stable;

--$70.6 million class A-SB at 'AAAsf', Outlook Stable;

--$499.4 million class A-3 at 'AAAsf', Outlook Stable;

--$839,084,138* class X-A 'AAAsf'; Outlook Stable;

--$104,156,000* class X-B 'A-sf'; Outlook to Positive from Stable;

--$111.1 million class A-M at 'AAAsf', Outlook Stable;

--$62.3 million class B at 'AA-sf', Outlook to Positive from Stable;

--$38.9 million class C at 'A-sf', Outlook to Positive from Stable;

--$45.8 million class D at 'BBB-sf', Outlook Stable;

--$19.4 million class E at 'BBsf', Outlook Stable;

--$18.1 million class F at 'Bsf', Outlook Stable.

*Notional amount and interest only.

Fitch does not rate the class G certificates.