NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 15 classes of Deutsche Bank Securities, Inc.'s (COMM) commercial mortgage pass-through certificates series 2012-CCRE5. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Fitch modeled losses of 2.5% of the remaining pool; expected losses on the original pool balance total 2.4%. The pool has experienced no realized losses to date. Fitch has designated five loans (5.5%) as Fitch Loans of Concern, which does not include any specially serviced loans.

As of the November 2014 distribution date, the pool's aggregate principal balance has been reduced by 2.5% to $1.11 billion from $1.13 billion at issuance. No loans are defeased. Interest shortfalls are currently affecting the non-rated class H.

The largest contributor to expected losses is the Holiday Village Mall loan (2.5% of the pool), which is secured by a 576,897 square foot (sf) (494,928 sf of which is collateral) indoor regional mall located in Great Falls, MT. The mall is anchored by Scheel's Sports, Sears, JC Penney, and Herberger's (non-collateral). The master servicer has been notified that Sears, which represents 15% of the net rentable area (NRA) will be closing their store on Dec. 7, 2014. The mall's occupancy is expected to drop to 74% from 90% as of June 2014. Fifteen tenants (31.5% NRSF) have some form of a co-tenancy clause which is tied to the closing of one or more of the department stores and/or occupancy thresholds between 50%-65% of the in-line (including junior anchors) occupancy. Some of the tenant's occupancy thresholds are tied to overall occupancy, including anchors. Scheel's (99,279/20% NRSF) and Bed Bath & Beyond (20,405 sf/4.12% NRSF) make up the majority of the square footage having co-tenancy clauses. Scheel's can vacate after one year if more than two tenants, including JC Penney, Sears, Herberger's or Ross Dress for Less, close for 180 days and sales decrease 15%. Bed Bath & Beyond can vacate after a year if 50% of the total of all buildings cease to be open. There is approximately 6% upcoming rollover in 2015.

The next largest contributor to expected losses is the Widener Building loan (5.2%), which is secured by a 455,746 sf, class B+ office building with ground level retail, which is leased to three restaurants, and below grade parking located in Philadelphia, PA; constructed in 1915. The largest tenants are the City of Philadelphia Municipal Authority with over 200,000 sf (44%) over five floors. The tenant has a separate private entrance and escalator, with a lease expiration in January 2026. The next largest tenant is Rawle and Henderson LLP (15%), expiration in November 2015; and the third largest tenant is First Judicial District of PA (11%), expiration in August 2032. The property is currently 87.7% occupied by ten tenants with an average rent of $22.65 sf. There is approximately 15% upcoming rollover in 2015. Per REIS as of 3rd quarter 2014, the Philadelphia metro office market vacancy is 14% with asking rent $25 sf.

The third largest contributor to expected losses is the 777 South Broad loan (4.8%), which is secured by a Class-A, LEED Silver-certified residential property located in Philadelphia, PA. The subject consists of 146 residential units and 18,939 sf of ground floor commercial space. As of August 2014, the property is 91.78% occupied with average rent $2,837/month. The 146 residential units consist of one- and two-bedroom lofts between 832 sf and 1,404 sf. Unit amenities include 10-foot ceilings with floor to ceiling windows, high-end kitchen appliances and bathroom fixtures, in-unit full-sized washer/dryers, and either a balcony or bay window. Common area amenities include a 24-hour concierge service, gated parking, fitness center, skydeck with hot tub, outdoor theater, and dining, lounging, and sunbathing areas, conference room, private clubroom and pub, bike and car-sharing services, complimentary storage cages, communal laundry facilities, hospitality suite, and visitor parking lot.

RATING SENSITIVITIES

Rating Outlooks on all classes remain Stable due to increasing credit enhancement and continued paydown. No rating actions are expected unless there are material changes to property occupancies or cash flows, delinquencies, or loans transferred to special servicing. Fitch will continue to monitor the performance of the Holiday Village Mall and the impact of the impending Sears store closing.

Additional information on rating sensitivity is available in the report 'COMM 2012-CCRE5 (US CMBS)' (Dec. 4, 2012), available at www.fitchratings.com.

Fitch affirms the following classes as indicated:

--$56.7 million class A-1 at 'AAAsf'; Outlook Stable;

--$159.8 million class A-2 at 'AAAsf'; Outlook Stable;

--$90.9 million class A-SB at 'AAAsf'; Outlook Stable;

--$100 million class A-3 at 'AAAsf'; Outlook Stable;

--$357.6 million class A-4 at 'AAAsf'; Outlook Stable;

--$888.2 million class X-A at 'AAAsf'; Outlook Stable;

--$52.4 million class X-B at 'AAsf'; Outlook Stable;

--$123.3 million class A-M at 'AAAsf'; Outlook Stable;

--$52.4 million class B at 'AAsf'; Outlook Stable;

--$211.1 million class PEZ at 'Asf'; Outlook Stable;

--$35.4 million class C at 'Asf'; Outlook Stable;

--$22.7 million class D at 'BBB+sf'; Outlook Stable;

--$32.6 million class E at 'BBB-sf'; Outlook Stable;

--$21.3 million class F at 'BBsf'; Outlook Stable;

--$18.4 million class G at 'Bsf'; Outlook Stable.

Fitch does not rate the $34.0 million class H 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. Fitch rates the class PEZ equivalent to the first loss of the lowest rated class C exchangeable certificates.

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:

--'COMM 2012-CCRE5 -- Appendix' (Dec. 4, 2013).

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=938775

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