CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has issued a presale report on Motel 6 Trust 2012-MTL6 Commercial Mortgage Pass-Through Certificates, Series 2012-MTL6.
Fitch expects to rate the transaction and assign Outlooks as follows:
--$105,000,000 class A-1 'AAAsf'; Outlook Stable;
--$404,500,000 class A-2 'AAAsf'; Outlook Stable;
--$404,500,000* class XA-1 'AAAsf'; Outlook Stable;
--$509,500,000* class XA-2 'AAAsf'; Outlook Stable;
--$540,500,000** class XB-1 'BB+sf'; Outlook Stable;
--$540,500,000** class XB-2 'BB+sf'; Outlook Stable;
--$189,900,000 class B 'AA-sf'; Outlook Stable;
--$145,100,000 class C 'A-sf'; Outlook Stable;
--$185,500,000 class D 'BBB-sf'; Outlook Stable;
--$20,000,000 class E 'BB+sf'; Outlook Stable.
* Interest-only class; XA-1 is equal to the notional of class A-2 and XA-2 is equal to notional balance of classes A-1 and A-2.
** Interest-only class; notional balance of classes B, C, D and E.
The expected ratings are based on information provided by the issuer as of Oct. 19, 2012.
The certificates represent the beneficial ownership in the trust, the primary asset of which is one loan having an aggregate principal balance of approximately $1.05 billion as of the cutoff date and primarily secured by 517 hotel properties, and equity pledges and cash flow pledges from entities that own the intellectual property and are a party to franchise agreements with third-party owned hotels. The loan was originated by JP Morgan Chase Bank, National Association, German American Capital Corporation and Citigroup Global Markets Realty Corp.
Fitch reviewed the transaction's collateral, including cash flow analysis, third party reports, loan documents, an asset summary review and site inspections.
The transaction has a Fitch stressed debt service coverage ratio (DSCR) of 1.55 times, a Fitch stressed loan-to value (LTV) of 68.5%, and a Fitch debt yield of 12.817.5%. Fitch's net cash flow represents a variance of approximately 10% to the issuer cash flow.
The Master Servicer and Special Servicer will be KeyCorp Real Estate Capital Markets, Inc. rated 'CMS1' and 'CSS2+', respectively, by Fitch.
The presale report is available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (Sept. 21, 2012);
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'Criteria for Special-Purpose Vehicles in Structured Finance Transactions' (June 13, 2011);
--'U.S. Commercial Mortgage Servicer Rating Criteria' (Feb. 18, 2011);
--'Surveillance Methodology for U.S. CMBS Fixed-Rate CMBS Transactions' (Nov. 17 2010);
--'Counterparty Criteria for Structured Finance Transactions' (March 14, 2011);
--'U.S. Commercial Mortgage Originator Review Criteria' (Feb. 18, 2011).
Applicable Criteria and Related Research: Motel 6 Trust 2012-MTL6, Series 2012-MTL6 (US CMBS)
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
Global Structured Finance Rating Criteria
Criteria for Special-Purpose Vehicles in Structured Finance Transactions
U.S. Commercial Mortgage Servicer Rating Criteria
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
Counterparty Criteria for Structured Finance Transactions
U.S. RMBS Originator Review and Third-Party Due Diligence Criteria
70 W Madison St.
Chicago, IL 60602
Source: Fitch Ratings