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.

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-K51.

KEY RATING DRIVERS

The affirmations reflect stable performance of the pool since issuance. As of the September 2016 distribution date, the pool's aggregate principal balance has been reduced by 6% to $1.14 billion from $1.21 billion at issuance. Fitch has designated two loans as Fitch Loans of Concern (FLOCs) (2.7%). There are no specially serviced loans, and five loans (4.6%) are fully defeased.

Stable Performance with No Material Changes: All loans in the pool are current as of the September 2016 distribution with property level performance generally in line with issuance expectations and no material changes to pool metrics.

Property Type Concentration: Of the pool, 100% is backed by multifamily properties. All loans were originated by various sellers/originators according to Freddie Mac property guidelines and adhere to the originator best practices identified by Fitch.

Partial Interest and Full-Term Interest Only Loans: One loan representing 1% of the pool is full-term interest only, and 28 loans representing 50.1% of the pool have partial-term interest-only components. Based on the loans' scheduled maturity balance, the pool is expected to amortize 16% during the term.

The largest loan in the pool (7.5%) 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 (5.6%) is secured by Aldingbrooke Terrace-Townhomes, a 667-unit garden-style and townhome complex located in West Bloomfield, MI. The property was built in 2010 and consists of 78 two- and three-story apartment buildings and a single-story clubhouse. The property has demonstrated stable performance since issuance. Occupancy was 94% as of June 2016, a slight increase from 90% at December 2015. The NOI DSCR reported at 2.00x for YTD June 2016 and 1.82x for YE 2015. The servicer-reported YE 2015 NOI increased 3% from YE 2014.

RATING SENSITIVITIES

The Rating Outlooks for all classes remain Stable. Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's portfolio-level metrics.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

Fitch affirms the following classes:

FREMF 2012-K18 Multifamily Mortgage Pass-Through Certificates

--$87.1 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

--$87.1 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.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016)

https://www.fitchratings.com/site/re/886006

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 16 Jun 2016)

https://www.fitchratings.com/site/re/882401

Global Structured Finance Rating Criteria (pub. 27 Jun 2016)

https://www.fitchratings.com/site/re/883130

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/site/re/873395

Related Research

FREMF 2012-K18 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-018 -- Appendix

https://www.fitchratings.com/site/re/681029

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1014251

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1014251

Endorsement Policy

https://www.fitchratings.com/regulatory

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Fitch RatingsPrimary AnalystCatherine BarbieriAssociate Director+1-212-908-0638Fitch Ratings, Inc.33 Whitehall StreetNew York, NY 10004orCommittee ChairpersonMary MacNeillManaging Director+1-212-908-0785orMedia Relations:Sandro Scenga, +1-212-908-0278sandro.scenga@fitchratings.com