Fitch Affirms JPMCC 2001-CIBC2; Maintains Negative Outlooks

NEW YORK--()--Fitch Ratings has affirmed all classes of J.P. Morgan Chase Commercial Mortgage Securities Corp. (JPMCC), commercial mortgage pass-through certificates, series 2001-CIBC2. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations are primarily due to sufficient credit enhancement and the continued principal paydown since Fitch's last rating action.

Fitch modeled losses of 29.9% of the remaining pool; expected losses of the original pool are at 5.7%, including losses already incurred to date (4.2%). Collin Creek Mall, the largest loan in the pool (77.8%), remains the largest loss contributor.

As of the January 2014 distribution date, the pool's aggregate principal balance has been reduced approximately 94.8% to $77.2 million from $1.149 billion at issuance. Currently, there are only eight loans remaining in the pool, two of which (3.6%) are defeased. There are no loans in special servicing. Interest shortfalls are affecting classes G through NR with cumulative unpaid interest totaling $2.7 million.

RATING SENSITIVITY

The Negative Outlooks reflect Fitch's concern over the concentration of the remaining pool and the risk of interest shortfalls should the largest loan transfer to special servicing. Classes C and D, both rated 'AAAsf', could be downgraded if shortfalls were to reach these classes. According to Fitch's criteria, ratings at 'AAAsf' and 'AAsf' should not incur interest shortfalls. Please see the following report 'Criteria for Rating Caps and Limitations in Global Structured Finance' for more information.

The largest loan in the pool is the Collin Creek Mall (77.8%), which is secured by the non-anchor spaces (332,055 sf) of a 1.1 million square foot regional mall in Plano, TX. The shadow anchors include Amazing Jake, Macy's, JC Penney, and Sears, all of which are under long-term leases. Dillards, a former shadow anchor, vacated in January 2014 after its lease expiration. The borrower is working to re-tenant the space. Property performance has deteriorated since year-end (YE) 2009, primarily due to a decrease in rents and an increase in operating expenses. The servicer-reported YE 2012 and trailing 12 month (TTM) first quarter (1Q) 2013 debt service coverage ratio (DSCR) was 0.87x and 0.91x, respectively, compared to 0.97x at YE 2012, 1.1x at YE 2010, 1.64x at YE 2009 and 1.75x at issuance. The property has experienced strong market competition from newer retail centers nearby. As of Sept. 30, 2013, the in-line space was 94% leased and 90% occupied, compared to 98% occupied at issuance. The loan remains current on debt service. The pool faces a high level of binary risk given this loan's size relative to the remaining trust. Losses are modeled in Fitch's stressed analysis; however, if the loan has difficulty refinancing, the loss severity could exceed current expectations.

Fitch has affirmed the following classes:

--$5.1 million class C at 'AAAsf'; Outlook Negative;

--$14.4 million class D at 'AAAsf'; Outlook Negative;

--$28.9 million class E at 'Bsf'; Outlook Negative;

--$12 million class F at 'CCCsf'; RE45%;

--$16.8 million class G at 'Dsf'; RE0%.

Classes A-1 through B have paid in full. Classes H, J, K, L and M have been depleted due to losses and remains at 'Dsf/RE0%'. Fitch does not rate NR class certificates. Fitch has previously withdrawn the ratings on the Interest-only class X-1 and X-2.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 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'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013);

--'Understanding CMBS Interest Shortfalls' (June 17, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Understanding CMBS Interest Shortfalls (Causes, Allocation and Recovery)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=710064

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=820563

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Amy Gan, +1-212-908-9143
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Amy Gan, +1-212-908-9143
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com