NorthStar Realty Finance Corp. priced its $351 million CMBS transaction, 2012-1, at a weighted average coupon of LIBOR + 1.63%, amid concerns that the structure's triple-A bond lacks sufficient credit enhancement, according to Fitch Ratings.

Fitch said today in a comment that the deal's most senior class (the class A notes) are structured with 56.5% credit enhancement, which would have likely achieve a rating no higher than ‘Asf’, which is two full rating categories below where the class is expected to be rated by Standard & Poor's and Moody's Investors Service.

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