Fitch Issues Presale on FREMF 2012-K708 & Freddie Mac SPCs, Series K-708

Fitch Ratings has issued a presale report on FREMF 2012-K708 multifamily mortgage pass-through certificates and Freddie Mac structured pass-through certificates, series K-708.

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

FREMF 2012-K708 Multifamily Mortgage Pass-Through Certificates

--$97,324,000 class A-1 'AAAsf'; Outlook Stable;

--$919,300,000 class A-2 'AAAsf'; Outlook Stable;

--$1,016,624,000* class X1 'AAAsf'; Outlook Stable;

--$1,016,624,000* class X2-A 'AAAsf'; Outlook Stable;

--$75,868,000 class B 'Asf'; Outlook Stable;

--$30,347,000 class C 'BBBsf'; Outlook Stable.

Freddie Mac Structured Pass-Through Certificates, Series K-708

--$97,324,000 class A-1 'AAAsf'; Outlook Stable;

--$919,300,000 class A-2 'AAAsf'; Outlook Stable;

--$1,016,624,000* class X1 'AAAsf'; Outlook Stable.

*Notional amount and interest only.

The expected ratings are based on information provided by the issuer as of May 21, 2012. Fitch does not expect to rate the $197,256,551 interest-only class X2-B, the $197,256,551 interest-only class X3, or the $91,041,551 class D for the FREMF 2012-K708 Multifamily Mortgage Pass Through Certificates. Fitch does not expect to rate the $197,256,551 interest-only class X3 for the Freddie Mac Structured Pass-Through Certificates, Series K-708.

The FREMF 2012-K708 Multifamily Mortgage Pass-Through Certificates (FREMF 2012-K708) represent the beneficial interests in a pool of 57 commercial mortgages secured by 57 properties. The Freddie Mac Structured Pass-Through Certificates, Series K708 (Freddie Mac SPC K708) represent a pass-through interest in the corresponding class of securities issued by FREMF 2012-K708. Each Freddie Mac SPC K708 security has the same designation as its underlying FREMF 2012-K708 class. All loans were originated by various seller/servicers according to the guidelines of Freddie Mac Capital Markets Execution (CME) product. The certificates follow a sequential-pay structure.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 72.9% of the properties by balance and cash flow analysis of 81.8% of the pool.

The transaction has a Fitch stressed debt service coverage ratio (DSCR) of 1.05x, a Fitch stressed loan-to value (LTV) of 114.2%, and a Fitch debt yield of 7.22%. Fitch's aggregate net cash flow represents a variance of 5.5% to issuer cash flows.

The Master Servicer will be Wells Fargo Bank, National Association, rated 'CMS2' by Fitch. The Special Servicer will be Midland Loan Services, Inc., rated 'CSS1' by Fitch.

The presale report is available at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

'Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions', Aug. 12, 2011;

'U.S. Commercial Mortgage Servicer Rating Criteria', Feb. 18, 2011;

'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions', Nov. 16, 2011;

'Global Structured Finance Rating Criteria', Aug. 4, 2011

'Criteria for Special-Purpose Vehicles in Structured Finance Transactions', June 13, 2011.

Applicable Criteria and Related Research: FREMF 2012-K708 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-708 (US CMBS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679716

Criteria for Special-Purpose Vehicles in Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=635249

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569

Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=662869

U.S. Commercial Mortgage Servicer Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005

Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647671

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Fitch Ratings
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Tara Sweeney
Senior Director
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One State Street Plaza
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Daniel Chambers
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