Fitch Upgrades One Class of JPMCC 2004-CIBC9.
Chicago: Fitch Ratings upgrades one class and affirms 10 classes of JP Morgan Chase Commercial Mortgage Securities Corp. 2004-CIBC9 (JPMCC 2004-CIBC9) commercial mortgage pass-through certificates. A full list of rating actions follows at the end of this release.
KEY RATING DRIVERS
Defeasance: Defeased collateral now represents 42.5% of the pool balance, up from 36.2% at the last rating action. Class E is now 75% covered by defeasance, up from 20% at the last rating action. Only eight of the original 98 loans remain and three of the remaining loans are fully defeased.
Upcoming Lease Rollover: Federal Express - Windsor Locks, the largest loan in the pool (33.71% of the remaining collateral balance), is a Fitch Loan of Concern (FLOC). The property is 100% occupied by FedEx on a lease that is coterminous with the upcoming anticipated repayment date (ARD) in June 2019. Additionally, there are two small loans (9.2% of the pool) backed by retail properties with major near term lease rollover, which could potentially leave the properties vacant or near vacant should tenants or spaces not renew or backfill quickly.
Maturity Profile: The transaction has paid down by approximately $7.4 million (27.3% of the last rating action pool balance) since Fitch's last rating action. One loan was disposed that was previously designated a FLOC and paid off ahead of its scheduled maturity with no loss to the trust. The largest loan may not repay at its ARD in June 2019 given the sole tenant's lease is scheduled to expire three months prior. Only two loans have 2019 scheduled loan maturities (4.4%), the defeased McAlester Shopping Center loan and the fully amortizing American Sale Building loan. Thereafter, no loan is scheduled to mature until 2022 at the earliest.
The revision of the Outlook to Positive from Stable for class E reflects the paydown of a previously designated FLOC, ahead of its scheduled maturity with no loss to the trust and the increase in defeasance coverage of this class to 75% from 20% since the last rating action. An upgrade to class E is possible should concerns associated with upcoming lease rollover be remediated. While a downgrade to class E is not expected, it is possible should an asset-level or economic event cause a decline in overall pool performance.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch has upgraded the following rating:
--$11 million class E to 'BBBsf' from 'BBsf'; Outlook revised to Positive from Stable.
Fitch has affirmed the following ratings:
--$109 thousand class D at 'AAAsf'; Outlook Stable;
--$8.6 million class F at 'Dsf'; RE 85%;
--$0 class G at 'Dsf'; RE 0%;
--$0 class H at 'Dsf'; RE 0%;
--$0 class J at 'Dsf'; RE 0%;
--$0 class K at 'Dsf'; RE 0%;
--$0 class L at 'Dsf'; RE 0%;
--$0 class M at 'Dsf'; RE 0%;
--$0 class N at 'Dsf'; RE 0%;
--$0 class P at 'Dsf'; RE 0%.
The class A-1, A-2, A-3, A-4, A-1A, B and C certificates have been paid in full. Fitch does not rate the class NR certificate. Fitch previously withdrew the rating on the interest-only class X certificates.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Jul 3, 2018|
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