OREANDA-NEWS. Fitch Ratings has affirmed six classes of FREMF 2012-K20 multifamily mortgage pass-through certificates and Freddie Mac structured pass-through certificates, series 2012-K020 as follows:

FREMF 2012-K20 Multifamily Mortgage Pass-Through Certificates
--$163.3 million class A-1 at 'AAAsf'; Outlook Stable;
--$899.7 million class A-2 at 'AAAsf'; Outlook Stable;
--$1.063 billion* class X1 at 'AAAsf'; Outlook Stable;
--$1.063 billion* class X2-A at 'AAAsf'; Outlook Stable;
--$71.4 million class B at 'A-sf'; Outlook Stable;
--$32.5 million class C at 'BBBsf'; Outlook Stable.

Freddie Mac Structured Pass-Through Certificates, Series 2012-K020
--$163.3 million class A-1 at 'AAAsf'; Outlook Stable;
--$899.7 million class A-2 at 'AAAsf'; Outlook Stable;
--$1.063 billion* class X1 at 'AAAsf'; Outlook Stable.

*Notional amount and interest only.

Of the FREMF 2012-K20 multifamily mortgage pass-through certificates, Fitch does not rate the interest-only class X2-B, the interest-only class X3 or class D. In addition, of the Freddie Mac structured pass-through certificates, series 2012-K020, Fitch does not rate interest-only class X3.

KEY RATING DRIVERS
The affirmations are based on stable performance of the underlying collateral pool since issuance. The pool has had no specially serviced or delinquent loans since issuance. As of the June 2015 distribution date, the pool's aggregate principal balance has been reduced by 2.6% to $1.26 billion from $1.3 billion at issuance. Fitch has designated one loan (1.1% of the pool) as a Fitch Loan of Concern, which is also on the master servicer's watch list. The loan is secured by a 256-unit garden apartment complex built in 1974 and located in Little Rock, AR. In 2012 there were several fires at the property and as a result the subject experienced fire damage to over 60 units. Per servicer reporting, repairs on the fire-damaged units reached completion in February 2015, and those units are leased. The net operating income debt service coverage ratio (NOI DSCR) was 0.97x as of year-end (YE) 2014 compared to 1.49x at issuance based on issuer's underwriting. However, the servicer anticipates improvement in the DSCR throughout 2015. Occupancy was 80.5% as of YE 2014.

RATING SENSITIVITIES
The Rating Outlooks on classes A-1, A-2, B, C, and interest-only classes X1 and X-2A remain Stable. Due to the recent issuance of the transactions and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes each transaction's overall portfolio-level metrics. Additional information on rating sensitivity is available in the FREMF 2012-K20 multifamily mortgage pass-through certificates and Freddie Mac structured pass-through certificates, series 2012-K020' (September 4, 2012) presale report, available at www.fitchratings.com.

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:

--'FREMF 2012-K20 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-020 -- Appendix' (Sept. 4, 2012).

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