Fitch Affirms FREMF 2011-K10

Business Wire

NEW YORK--(BUSINESS WIRE)--

Fitch Ratings has affirmed one class of Freddie Mac's FREMF Mortgage Trust, series 2011-K10 multifamily mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmation is based on the stable performance of the underlying collateral pool. As of the July 2013 remittance, the pool had one specially serviced loan and no delinquent loans. Fitch has designated the one specially serviced loan (0.6%) as a Fitch Loan of Concern.

The transaction represents the beneficial interests in a pool of 76 commercial mortgages secured by 81 properties. The pool is 100% collateralized by multifamily properties. As of the July 2013 distribution date, the pool's aggregate principal balance has been reduced by 2.4% to $1.14 billion from $1.17 billion at issuance. No loans are defeased.

The specially-serviced loan (0.6%) is secured by a 35 unit multifamily property located in Redwood City, CA approximately 26 miles southeast of San Francisco. The loan transferred to special servicing in May 2013 due to monetary default, but the borrower immediately brought the loan current after the loan transferred. The Special Servicer plans to monitor the loan for three timely payments and return to the master servicer as corrected. The property's location is near local amenities, public transportation and area freeways. The inspection report from June 2013 reported occupancy of 97% and gave an overall property grade of good. The year-end (YE) 2012 debt service coverage ratio (DSCR) was 1.75x.

RATING SENSITIVITY

The Rating Outlook for the class is expected to remain Stable as performance of the underlying collateral is stable to improving since issuance. For additional information on rating sensitivity, please see FREMF 2011-K10, new issuance report, dated Jan. 13, 2011.

Fitch affirms the following classes as indicated:

--$68.5 million class B at 'A-sf', Outlook Stable.

Fitch does not rate classes X-2, X-3, or C.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 18, 2012 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' (May 24, 2013);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=800198

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 MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contact:
Fitch Ratings
Primary Analyst:
Darren Liss, +1-212-908-0753
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com
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