The generational loss that Dave is referring to applies specifically to ProRes. So it's not counted as a generation when you transcode from XYZ codec to ProRes.
In your case it looks like this
MTS --> ProRes (transcode, no generational loss as you haven't been in ProRes until now, this is essentially the first generation of ProRes)
Export timeline as ProRes Master (2nd generation)
So if you want to re-import the master and drop the graphic on there you shouldn't have any problems. And even if you were over 6 generations it takes a very discerning eye to notice the degradation. I had a hard time seeing it at NAB when Apple released this codec back in '07....but maybe I don't have a discerning eye! ;-)
You'll be fine re-importing the master and tweaking that real quick.
Ryan Holmes
http://www.ryanholmes.me
vimeo.com/ryanholmes