OREANDA-NEWS. Fitch Ratings has affirmed two classes of VNDO 2012-6AVE Mortgage Trust. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations reflect stable performance of the underlying collateral since issuance. The sponsor has successfully secured new leases to offset tenant vacancies. Although four tenants (21.7% net rentable area [NRA]) vacated at lease expiration in 2014, two new leases (23.7%) have offset the temporary vacancy declines and maintained overall occupancy for the building. As of June 2015, occupancy was reported to be 95% with March 2015 net operating income (NOI) debt service coverage ratio (DSCR) of 2.51x compared with issuance occupancy of 95% and NOI DSCR of 3.03x. The DSCR is expected to improve as new tenants' rents commence.

As of the July 2015 distribution date, the pool's aggregate certificate balance remained at $950 million, unchanged from issuance. The loan is interest only for the entire 10-year term.

This single borrower transaction is secured by the 1290 Avenue of the Americas building located in the Plaza District of Manhattan. The property consists of a 43-story, 2.1 million sf high-rise office building that includes 62,000 sf of ground floor retail space and two subterranean levels of storage space. The property, built in 1963, benefits from its superior office location on Avenue of the Americas between 51st and 52nd street. The building is in close proximity to Central Park, the Fifth Avenue retail corridor, the Plaza Hotel, Rockefeller Center, and Radio City Music Hall. The largest space at the property is leased to AXA Equitable Financial comprising 21% of the NRA through 2037. AXA subleases their space to several other tenants. Other major tenants in the building include Neuberger Berman (18.2%), Bryan Cave (9.5% of the NRA), Wenner Media (8.6%) and Cushman and Wakefield (7.3%).

Neuberger Berman (18.2%), which will become the largest occupied tenant in the building, announced plans to relocate its global headquarters to the subject property by the fourth quarter of 2016, occupying approximately 412,000 sf pursuant to a 20-year lease.

The AXA Equitable space (423,174 sf) is subleased to several tenants including Morgan Stanley for 133,041 sf, Sirius Satellite for 86,877 sf and Remy Cointreau for 52,811 sf. All of the leases were structured with expirations coterminous with the underlying AXA Equitable lease.

The sponsor completed a full renovation of the 15,000 sf lobby which includes updates to the storefronts and entrances to the building and modernization of the elevator cabs and restrooms.

Reis reported an average vacancy rate of 10.5% with average asking office rents of $96.89 in the Plaza District submarket of Manhattan. This compares with the greater New York Metro area which had a vacancy rate of 9.6% with average asking rents of $66.11 psf.

RATING SENSITIVITIES
The Rating Outlook for both classes remains Stable. No rating actions are anticipated unless there are material changes in property occupancy or cash flow. The property performance is consistent with issuance.

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

Fitch has affirmed the following classes as indicated:

--$603.8 million class A at 'AAAsf'; Outlook Stable;
--$603.8 million class X-A at 'AAAsf'; Outlook Stable.

Fitch does not rate the class B, C, D, E and X-B certificates.