NEW YORK--()--Fitch Ratings affirms class H from J.P. Morgan Commercial Mortgage Finance Corp.'s mortgage pass-through certificates, series 2000-C9. A list of rating actions follows at the end of this press release.
Key Rating Drivers
The affirmation is due to the stable performance of the remaining collateral.
As of the February 2013 distribution date, the pool's aggregate principal balance has been reduced approximately 97.4% to $21.7 million from $814.4 million at issuance, including 4.6% realized losses to date. There are only five of the 140 original loans remaining. The largest loan (41.9%) of the pool is defeased. Interest shortfalls are affecting the non-rated classes J through NR with cumulative unpaid interest totaling $1.4 million. The weighted average debt service coverage ratio for the non-defeased loans in the pool is 1.36x.
Fitch expects the Rating Outlook on the remaining rated class to remain Stable. Although the credit enhancement for class H has increased significantly, upgrades are not warranted due to the uncertain outcome related to the second largest loan in the pool. Downgrades are not likely as the pool benefits from defeasance of the largest loan.
Fitch has identified the second largest loan (36.7%) as a Loan of Concern. The loan is secured by a four-building industrial property totaling 1.02 million square feet (sf) in Elisabeth, NJ. The loan was transferred to the special servicer in October 2009 as the borrower was not able to refinance the loan at the anticipated repayment date (ARD) of Sept. 1, 2009. The loan was modified in January 2012 with a five-year extension of the ARD date and reduced interest rate. The loan was returned to the master servicer in April 2012. As of third quarter (3Q) 2012, the property performance has improved with significant increase in net operating income (NOI) primarily due to reduced operating expenses. Servicer reported occupancy was 75%, compared to 84% at year-end (YE) 2011 and 97% at underwriting.
Per borrower notice, the property is subject to partial condemnation due to the intention of the Port Authority of NY & NJ to replace an existing bridge with a new one. The Port Authority is currently working to finalize a compensation plan.
Fitch has affirmed the following class, as indicated:
--$12.2 million class H at 'BB+sf'; Outlook Stable.
Classes A-1 through G have paid in full. Classes J, K and NR are not rated by Fitch. Fitch has previously withdrawn the rating on the Interest-only class X.
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 18, 2012 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:
Structured Finance >> CMBS >> Criteria Reports
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012).
Applicable Criteria and Related Research
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria