Fitch Ratings has assigned the following ratings and Rating Outlooks to FREMF 2022-K748 Multifamily Mortgage Pass-Through Certificates, series 2022-K748 and Freddie Mac Structured Pass-Through Certificates, Series K-748.

RATING ACTIONS

Entity / Debt

Rating

Prior

FREMF 2022-K748

A-1

LT

AAAsf

New Rating

AAA(EXP)sf

A-1

ULT

AAAsf

New Rating

AAA(EXP)sf

A-2

LT

AAAsf

New Rating

AAA(EXP)sf

A-2

ULT

AAAsf

New Rating

AAA(EXP)sf

A-M

LT

NRsf

New Rating

NR(EXP)sf

A-M

ULT

NRsf

New Rating

NR(EXP)sf

D

LT

NRsf

New Rating

NR(EXP)sf

X1

LT

AAAsf

New Rating

AAA(EXP)sf

X1

ULT

AAAsf

New Rating

AAA(EXP)sf

Page

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VIEW ADDITIONAL RATING DETAILS

FREMF 2022-K748 Multifamily Mortgage Pass-Through Certificates, series 2022- K748 (FREMF 2022-K748):

$27,426,000b class A-1 'AAAsf'; Outlook Stable;

$821,000,000b class A-2 'AAAsf'; Outlook Stable;

$848,426,000ab class X1 'AAAsf'; Outlook Stable;

$848,426,000a class X2-A 'AAAsf'; Outlook Stable.

In addition, Fitch has issued unenhanced ratings, which reflect the underlying creditworthiness absent of the Freddie Mac guarantee as well as Outlooks to FREMF 2022-K748 of 'AAAsf'/Stable for classes A-1, A-2 and X1. Fitch has not issued unenhanced ratings to class X2-A as that class is not guaranteed by Freddie Mac and the Long-Term rating 'AAAsf'/Stable already reflects the underlying creditworthiness absent the guarantee.

Freddie Mac Structured Pass-Through Certificates, Series K-748 (Freddie Mac SPC K-748):

$27,426,000b class A-1 'AAAsf'; Outlook Stable;

$821,000,000b class A-2 'AAAsf'; Outlook Stable;

$848,426,000ab class X1 'AAAsf'; Outlook Stable.

Fitch has also issued unenhanced ratings, which reflect the underlying creditworthiness absent of the Freddie Mac guarantee as well as Outlooks to Freddie Mac SPC K-748 of 'AAAsf'/Stable for classes A-1, A-2, and X1.

The FREMF 2022-K748 trust consists of both guaranteed and unguaranteed certificates. The underlying guaranteed certificates consist of the classes A-1, A-2, A-M, X1, XAM and X3. These certificates will be purchased by Freddie Mac to be deposited into the Freddie Mac SPC K-748 trust to back the Freddie Mac SPC K-748 certificates. The ratings of classes A-1, A-2 and X1 consider the Freddie Mac guarantee and the underlying creditworthiness of the collateral. Freddie Mac is currently rated 'AAA'/'F1+'/Negative.

(a) Notional amount and interest only (IO).

(b) Guaranteed by Freddie Mac.

Fitch does not rate the following classes of FREMF 2022-K748: $228,864,563 IO-class X2-B; $175,000,000 class A-M; $175,000,000 IO-class XAM; $53,864,563 IO-class X3 and $53,864,563 class D. Additionally, Fitch does not rate the following classes of Freddie Mac SPC K-748: $175,000,000 class AM; $175,000,000 IO-class XAM and $53,864,563 IO-class X3. These ratings and unenhanced ratings are based on the information provided by the issuer as of Feb. 22, 2022.

Transaction Summary

The certificates represent the beneficial ownership interest in the trust, the primary assets of which are 26 loans secured by 26 fixed-rate commercial properties having an aggregate principal balance of $1,077,290,563 as of the cutoff date.

Freddie Mac Structured Pass-Through Certificates Series K-748 (SPC K-748) represents pass-through interest in the corresponding class of securities issued by FREMF 2022-K748. Each Freddie Mac SPC K-748 security has the same designation as its underlying FREMF 2022-K748 class. Fitch reviewed a comprehensive sample of the transaction's collateral, including cash flow analysis of 95.1% of the pool and asset summary reviews of 100% of the pool.

Coronavirus: The ongoing containment effort related to the coronavirus pandemic may have an adverse impact on near-term revenues (i.e. bad debt exposure) and operating expenses (sanitation costs) for some properties in the pool.

KEY RATING DRIVERS

Higher Leverage than Recent Freddie Mac Transactions: The pool's Fitch debt service coverage ratio (DSCR) and loan-to-value ratio (LTV) are 1.05x and 140.2%, respectively. The pool's Fitch DSCR is lower than the 2021 Fitch-rated seven-year average DSCR of 1.07x (which represents six transactions: FREMF 2021-K741, FREMF 2021-K742, FREMF 2021- K743, FREMF 2021-K744, FREMF 2021-K745 and FREMF 2021-K746) but is slightly above the 2021 Fitch-rated 10-year average DSCR of 1.02x.

The pool's Fitch LTV reflects a higher than average Fitch LTV for 2021 Fitch-rated seven-year transactions of 135.0% and is also above the average Fitch LTV for 2021 Fitch-rated 10-year transactions of 136.4%.

Traditional Multifamily Properties: The pool is secured by 99.4% traditional multifamily properties, with no loans secured by health care properties. The pool's traditional multifamily concentration is above the 2021 Fitch-rated averages for seven- and 10-year Freddie Mac transactions of 97.4% and 94.6%, respectively. In addition, one loan (0.6% of the pool) is secured by a MHC property, which is below the 2021 Fitch-rated average for seven-year and 2021 average for 10-year Freddie Mac transaction of averages of 1.5% and 3.3%, respectively.

Limited Amortization: The pool is scheduled to amortize by only 2.6% of the initial pool balance prior to maturity, which is well below the 2021 Fitch-rated average for seven-year transactions of 4.2% and below the 2021 Fitch-rated average for 10-year Freddie Mac transactions of 7.3%. Eighteen loans (66.6% of pool) are full-term interest-only (IO) loans and seven loans (31.8% of pool) are partial IO loans. The remaining loan (1.6% of the pool) is an amortizing balloon loan.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative rating action/downgrade:

Declining cash flow decreases property value and capacity to meet its debt service obligations. The list below indicates the model implied rating sensitivity to changes in one variable, Fitch NCF:

Original Rating: 'AAAsf';

10% NCF Decline: 'AA+sf';

20% NCF Decline: 'AA-sf';

30% NCF Decline: 'A-sf'.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

Fitch did not consider the implementation of positive stresses for this transaction as the rated classes are at the highest rating level and cannot be upgraded further. The presale report includes a detailed explanation of additional stresses and sensitivities on page 10 of the report.

Best/Worst Case Rating Scenario

International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

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

Fitch was provided with Form ABS Due Diligence-15E (Form 15E) as prepared by Deloitte & Touche LLP. The third-party due diligence described in Form 15E focused on a comparison and re-computation of certain characteristics with respect to each of the mortgage loans. Fitch considered this information in its analysis and it did not have an effect on Fitch's analysis or conclusions.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

REPRESENTATIONS, WARRANTIES AND ENFORCEMENT MECHANISMS

A description of the transaction's representations, warranties and enforcement mechanisms (RW&Es) that are disclosed in the offering document and which relate to the underlying asset pool is available by clicking the link to the Appendix. The appendix also contains a comparison of these RW&Es to those Fitch considers typical for the asset class as detailed in the Special Report titled 'Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions'.

ESG Considerations

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.

Additional information is available on www.fitchratings.com

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