Market Overview

Fitch to Rate Motel 6 Trust 2012-MTL6 Commercial Mortgage Pass-Thru Certificates; Presale Issued

Share:
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)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=693129

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=688831

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

Criteria for Special-Purpose Vehicles in Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=680591

U.S. Commercial Mortgage Servicer Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005

Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=662869

Counterparty Criteria for Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678938

U.S. RMBS Originator Review and Third-Party Due Diligence Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676851

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 Ratings
Primary Analyst
Jeff Watzke
Senior Director
+1-312-606-2358
Fitch, Inc.
70 W Madison St.
Chicago, IL 60602
or
Committee Chairperson
Eric Rothfeld
Managing Director
+1-212-908-0761
or
Media Relations
Sandro Scenga
+1-212-908-0278
sandro.scenga@fitchratings.com
















View Comments and Join the Discussion!