OREANDA-NEWS. Fitch Ratings has affirmed 13 classes of Cantor Commercial Real Estate's COMM 2012-CCRE3 commercial mortgage pass-through certificates. A list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations reflect the stable performance of the underlying collateral pool since issuance. There are currently six loans on the servicer's watchlist, representing 16.8% of the pool. The largest of these loans is being flagged for a minor construction accident that occurred at the property over a year ago, and is not considered a Fitch Loan of Concern. There is one specially serviced loan which was transferred in relation to a non-monetary default issue. This loan is not expected to incur any trust loss. There has been limited amortization since issuance. Loans representing 25.8% of the pool are interest-only for the full term. At issuance, loans representing 14.6% had partial interest-only periods, which have burned off for all but two loans (0.3% of the pool).

The largest loan in the pool, 260 and 261 Madison Avenue (10.6% of the pool) is secured by two office properties totalling 923,277 square feet (sf) located in Midtown Manhattan. The loan has a $105 million pari-passu note which was securitized in the COMM 2012-CCRE2 transaction. The loan is currently on the servicer's watchlist in relation to a crane accident that occurred in May 2015. During the installation of new air conditioning equipment, a crane malfunctioned, which resulted in a 23,000 pound air conditioning unit falling 30 stories to the ground. There were no serious injuries reported, but exterior and interior components of the building were damaged in the fall. It is unclear whether ongoing issues related to last year's accident are keeping this loan on the watchlist, but YE2015 debt service coverage ratio (DSCR) was 2.05x, up from 1.74x at YE2014. This loan is interest-only for the full term.

The second largest loan (8.6% of the pool) is secured by Crossgates Mall, a 1.7 million sf (of which, 1.3 million sf is collateral) three-story enclosed mall located in Albany, NY. The property is anchored by Macy's (non-collateral), JC Penney, Lord and Taylor, Dick's Sporting Goods, Forever 21, Burlington Coat Factory and an 18-screen Regal Cinemas. Another previously vacant anchor pad was newly leased to Lucky Strike, after another bowling/entertainment concept backed out of the deal after completing almost half of its originally planned build-out. The whole loan is split between five notes, two of which are securitized in this transaction, two in COMM 2012-CCRE2 and another in COMM 2012-CCRE1. The collateral was 89% occupied as of March 2016.

One loan is in special servicing. Landmark Building (1.4% of the pool) is secured by a 331,361 sf office building in Greenville, SC. The loan was transferred to special servicing in May 2014 after the guarantor filed for bankruptcy. The guarantor is currently working through reorganization and has been cooperative and communicative with the special servicer. The loan is current and the YE2015 DSCR was reported at 2.04x. An updated appraisal was ordered due to the transfer to special servicer and indicated sufficient equity in the property. Fitch does not anticipate any losses on the loan.

RATING SENSITIVITIES

The Rating Outlook for all classes remains Stable. Due to limited seasoning and a lack of amortization, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio level metrics.

DUE DILIGENCE USAGE

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

Fitch has affirmed the following ratings:

--$3.2 million class A-1 at 'AAAsf', Outlook Stable;

--$155.4 million class A-2 at 'AAAsf', Outlook Stable;

--$75.8 million class A-SB at 'AAAsf', Outlook Stable;

--$576.3 million class A-3 at 'AAAsf', Outlook Stable;

--$118.9 million class A-M at 'AAAsf', Outlook Stable;

--$928.2 million* class X-A at 'AAAsf', Outlook Stable;

--$75.1 million class B at 'AA-sf', Outlook Stable;

--$26.6 million class C at 'Asf', Outlook Stable;

--$0 class PEZ at 'Asf', Outlook Stable;

--$26.6 million class D at 'A-sf', Outlook Stable;

--$43.8 million class E at 'BBB-sf', Outlook Stable;

--$21.9 million class F at 'BBsf', Outlook Stable;

--$20.3 million class G at 'Bsf', Outlook Stable.

*Notional amount and interest-only.

Fitch does not rate the class H and X-B certificates. The class A-M, B and C certificates may be exchanged for the class PEZ certificates and the class PEZ certificates may be exchanged for the class A-M, B and C certificates.