Fitch Affirms FREMF 2012-K23 & Freddie Mac Structured Pass-Through Ctfs, Series K-023

Fitch Ratings has affirmed all six classes of FREMF 2012-K23 multifamily mortgage pass-through certificates and three classes of Freddie Mac structured pass-through certificates, series K-023. A detailed list of rating actions follows at the end of this release.

KEY RATINGS DRIVERS

The affirmations are based on overall stable performance of the underlying collateral pool. As of the November 2014 remittance, the pool's aggregate principal balance has been paid down by 0.8% to $1.357 billion from $1.369 billion at issuance. Fourteen of the Top 15 loans (93% of the pool) reported full-year 2013 financials. The pool's overall net operating income (NOI) has been stable with a 5.3% increase based on 2013 reported NOI when compared to the previous year's reported metrics. The pool has no Fitch Loans of Concern, servicer watchlist, or specially serviced loans.

The affirmations of the Freddie K-032 certificates are the result of the pass-through nature of the certificates, as they are dependent on the underlying ratings of corresponding classes of FREMF 2012-K23.

RATINGS SENSITIVITIES

All classes maintain Stable Outlooks. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics. Additional information on rating sensitivity is available in the report 'FREMF 2012-K23 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K023' (Feb. 20, 2013), available at www.fitchratings.com.

The largest loan of the pool (5.24%) is secured by Highland Village Townhomes, a 1,098-unit complex located in Halethorpe, MD. The subject is located 15 miles north of Fort George G. Meade, a top employer in the Baltimore-Towson metropolitan statistical area (MSA). The subject benefits from the recent renovations to the interior finishes along with replacement of appliances within the individual units. The apartment complex amenities include two playgrounds, a laundry facility, and a privately operated YMCA.

The second largest loan (4.41%) is secured by Archstone Legacy Place, a 285-unit mid-rise apartment complex situated on 9.49 acres approximately 12 miles southwest of downtown Boston. The two midrise buildings, built in 2009, are in excellent physical condition and located next to an MBTA commuter rail that accesses the region's employment centers. The common amenities include a 304 space parking garage, fitness center, clubroom, business center, outdoor heated pool with cabana, and picnic area with barbeque grills. Residents can access the upscale lifestyle center on the adjacent site, Legacy Place, for grocery shopping, retail, and restaurant options.

The third largest loan (4.08%) is secured by, Mansion At Bala, a 276-unit apartment complex located in Philadelphia, PA. The property is well located in the submarket with access to public transportation on the premises and a major retail center located directly across from the subject. The property is one of the top complexes in the market featuring amenities such as a community pool, fitness center, business center, and recreational room.

Fitch has affirmed the following classes as indicated:

FREMF 2012-K23 Multifamily Mortgage Pass-Through Certificates

--$189.6 million class A-1 at 'AAAsf'; Outlook Stable;

--$944.9 million class A-2 at 'AAAsf'; Outlook Stable;

--$1.135 billion class X1 at 'AAAsf'; Outlook Stable;

--$1.135 billion class X2-A at 'AAAsf'; Outlook Stable;

--$85.6 million class B at 'A-sf'; Outlook Stable;

--$34.2 million class C at 'BBBsf'; Outlook Stable.

Freddie Mac Structured Pass-Through Certificates, Series K032

--$189.6 million class A-1 at 'AAAsf'; Outlook Stable;

--$944.9 billion class A-2 at 'AAAsf'; Outlook Stable;

--$1.135 billion class X1 at 'AAAsf'; Outlook Stable.

Of FREMF 2012-K032, Fitch does not rate the $222.6 million interest-only class X2-B, the $222.6 million interest-only class X3, and the $102.7 million class D. Of the Freddie Mac Structured Pass-Through Certificates, Series K032, Fitch does not rate the $222.6 million interest-only class X3.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 20, 2014);

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

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 reports:

--'FREMF 2012-K23 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-711' (Feb. 20 2013).

--'FREMF 2012-K23 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K023 Appendix' (Feb. 20 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

FREMF 2012-K23 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-023

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=698217

FREMF 2012-K23 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-023 -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=698496

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=934875

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.