Fitch Affirms Institutional Mortgage Capital 2012-2

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed all rated classes of Institutional Mortgage Capital, commercial mortgage pass-through certificates series 2012-2 (IMSCI 2012-2). A detailed list of rating actions follows at the end of this release

KEY RATING DRIVERS

The affirmations of IMSCI 2012-2 are based on the stable performance of the underlying collateral pool. As of the June 2015 remittance, the pool's aggregate principal balance has been paid down by 8.1% to C$220.6 million from C$240.2 million at issuance. One loan has paid off since issuance after transferring to special servicing in late 2013. The trust did not incur a loss upon disposition.

There are currently no delinquent loans as of the June 2015 remittance date. In addition, there are no interest-only loans in the pool. Approximately 74% of the remaining pool provides for full or partial recourse to the borrowers and/or to the guarantor of a loan. However, the pool is highly concentrated, with the top 10 loans representing 66.4% of the pool by balance while the largest 15 represents 82.2%.

Fitch reviewed the year-end (YE) 2014 operating statements, rent rolls and interim 2015 reports (when available) provided for the top 10 assets. For those loans in the pool without updated financials and occupancy information, Fitch applied an additional haircut to prior reported income for modeling purposes.

The largest loan in the pool, Cedars Apartments (9.4% of the pool balance), is secured by a 276-unit apartment complex located in Calgary, Alberta. The reported occupancy as of YE 2014 was 94.6%, compared with 97% at issuance. The loan is full recourse to the borrower and sponsor.

The second largest loan in the pool, Chateau Janeville Apartments (8.3% of the pool), is secured by a 271-unit apartment complex located in Ottawa, Ontario. The reported occupancy as of YE 2014 was approximately 94.1%, compared with 97.4% at issuance. The loan is full recourse to the borrower.

The largest Fitch Loan of Concern is the third largest loan in the pool, Lakewood Apartments, (8% of the pool). The loan is backed by a 111-unit apartment building located in Fort McMurray, Alberta. The reported occupancy has declined to approximately 78% from occupancy of 97.3% at issuance. The servicer watch list notes indicate the property has fluctuating occupancy between winter and summer. The loan is full recourse to the borrower and sponsor.

RATING SENSITIVITIES

The Rating Outlook remains Stable for all classes. No rating actions are expected unless there are material changes to property occupancies or cash flows, increased delinquencies, or additional loans transferred to special servicing. Additional information on rating sensitivity is available in the report 'IMSCI 2012-2' (Jul. 12, 2012), available at www.fitchratings.com

DUE DILIGENCE USAGE

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

A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:

--'IMSCI 2012-2 -- Appendix' (Jul. 13, 2012).

Fitch has affirmed the following ratings:

--C$121.6 million class A-1 at 'AAAsf'; Outlook Stable;

--C$63 million class A-2 at 'AAAsf'; Outlook Stable;

--Interest-only class XP at 'AAAsf'; Outlook Stable;

--C$6.0 million class B at 'AAsf'; Outlook Stable;

--C$8.4 million class C at 'Asf'; Outlook Stable;

--C$7.2 million class D at 'BBBsf'; Outlook Stable;

--C$3.6 million class E at 'BBB-sf'; Outlook Stable;

--C$3.0 million class F* at 'BBsf'; Outlook Stable;

--C$2.4 million class G* at 'Bsf'; Outlook Stable.

* Non-offered certificates.

Fitch does not rate the C$5.4 million class H or the interest-only class XC.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 31 Mar 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=986983

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=986983

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150625006188/en/

Fitch Ratings
Jeffrey Diliberto
Director
+1-312-368-3268
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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