OREANDA-NEWS. Fitch Ratings has affirmed five classes of Freddie Mac 2012-K18 multifamily mortgage pass-through certificates and three classes of Freddie Mac structured pass-through certificates, K-018. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations of Freddie Mac 2012-K18 are based on the stable performance of the underlying collateral. As of the October 2015 distribution date, the pool's aggregate principal balance has been reduced by 4.57% to $1.16 billion from $1.21 billion at issuance. Fitch has designated one Fitch Loan of Concern (1.2%). There are no specially serviced loans, and four loans (3.7%) are fully defeased.

The affirmations of the Freddie Mac K-018 certificates are the result of the pass-through nature of the certificates, as they are dependent on the underlying ratings of corresponding classes for FREMF 2012-K18.

The largest loan in the pool (7.3%) is secured by Central Astoria Apartments, a 100% rent stabilized, 894-unit garden-style apartment complex located in Astoria, NY. The property is located close to several major highways, within 10 minutes of LaGuardia Airport, and less than a 30-minute subway ride into Manhattan. The property has been 99% occupied since issuance.

The second largest loan (5.7%) is secured by Aldingbrooke Terrace-Townhomes, a 667-unit garden-style and townhome complex located in West Bloomfield, MI. The property was improved in 2010 with 78 two- and three-story apartment buildings and a single-story clubhouse. The property lacks competition in the submarket due to the large unit sizes compared to its competitors. As of December 2014, occupancy was 90%.

The third largest loan in the pool (3.9%), is secured by Lofts 640, a 265-unit, high-rise apartment building located in Philadelphia, PA. A former industrial warehouse built in 1913, the borrower purchased the property in 2004 and converted it to loft-style residential units. The property was 96% occupied as of March 2015.

RATING SENSITIVITIES

All classes maintain Stable Outlooks. 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 affirms the following classes as indicated:

FREMF 2012-K18 Multifamily Mortgage Pass-Through Certificates
--$104.4 million class A-1 at 'AAAsf'; Outlook Stable;
--$887.5 million class A-2 at 'AAAsf'; Outlook Stable;
--$74.3 million class B at 'A-sf'; Outlook Stable;
--$991.8 million* class X1 at 'AAAsf'; Outlook Stable;
--$991.8 million* class X2-A at 'AAAsf'; Outlook Stable.

Fitch does not rate classes C, X3 and X2-B certificates.

Freddie Mac Structured Pass-Through Certificates, Series K-018
--$104.4 million class A-1 at 'AAAsf'; Outlook Stable;
--$887.5 million class A-2 at 'AAAsf'; Outlook Stable;
--$991.8 million* class X1 at 'AAAsf'; Outlook Stable.

*Notional amount and interest only.
Fitch does not rate the X3 class certificate.