Fitch Affirms JPMCC 2011-C3

NEW YORK--()--Fitch Ratings has affirmed 13 classes of J.P. Morgan Chase Commercial Mortgage Securities Corp. (JPMCC) commercial mortgage pass-through certificates series 2011-C3. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Fitch's affirmations are based on the stable performance of the underlying collateral pool. There have been no delinquent or specially serviced loans since issuance. Fitch reviewed the most recently available quarterly financial performance of the pool as well as updated rent rolls for the top 15 loans, which represent 76.4% of the transaction.

As of the February 2014 distribution date, the pool's aggregate principal balance has been reduced by 4.4% to $1.43 billion from $1.49 billion at issuance. No loans are defeased. Deminimus interest shortfalls are currently affecting class NR.

The largest loan in the pool (14.8%) is secured by a 1,556,382 square foot (sf) regional mall located in Holyoke, MA. The mall is anchored by Macy's, Sears, Target, and J.C. Penney. The total collateral size is 1,356,382 sf, as Macy's owns both the store and land. Occupancy increased to 95.2% as of Sept. 30, 2013 from 91.1% at year-end 2012.

The second largest loan (9.3%) is secured by a portfolio of 32 geographically diversified Alberston's grocery retail properties. The properties are located across five states, primarily in the Southwest. The portfolio has maintained its 100% occupancy level since issuance. No lease expires until 2030.

One of the top 15 loans (3.5%) is secured by four office buildings (390,380 sf) located in Collierville, TN, all of which are 100% leased to FedEx (not rated by Fitch). Although the leases expire one year prior to the maturity of the loan, the tenant has two 10-year extension options. In-place rents are in line with submarket rent.

RATING SENSITIVITY

All classes maintain Stable Outlooks. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset- level event changes the transaction's portfolio-level metrics. Additional information on rating sensitivity is available in the report 'J.P. Morgan Chase Commercial Mortgage Securities Trust 2011-C3' (Feb. 17, 2011), available at www.fitchratings.com.

Fitch affirms the following classes as indicated:

--$16.3 million class A-1 at 'AAAsf', Outlook Stable;

--$318.7 million class A-2 at 'AAAsf', Outlook Stable;

--$253.6 million class A-3 at 'AAAsf', Outlook Stable;

--$100 million class A-3FL at 'AAAsf', Outlook Stable;

--$485.4 million class A-4 at 'AAAsf', Outlook Stable;

--Interest only class X-A at 'AAAsf'; Outlook Stable;

--$41.1 million class B at 'AAsf', Outlook Stable;

--$52.3 million class C at 'Asf', Outlook Stable;

--$35.5 million class D at 'BBB+sf', Outlook Stable;

--$41.1 million class E at 'BBB-sf', Outlook Stable;

--$9.3 million class G at 'BBsf', Outlook Stable;

--$16.8 million class H at 'Bsf', Outlook Stable;

--$3.7 million class J at 'B-sf', Outlook Stable.

Fitch does not rate the class F and NR certificates.

A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:

--'J.P. Morgan Chase Commercial Mortgage Securities Trust 2011-C3' (Feb. 17, 2011).

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).

Applicable Criteria and Related Research:

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

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=822671

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:
Tiffany Pierce, +1-212-908-9107
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Karen Trebach, +1-212-908-0215
Senior Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst:
Tiffany Pierce, +1-212-908-9107
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Karen Trebach, +1-212-908-0215
Senior Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com