NEW DELHI & SYDNEY & SINGAPORE--(BUSINESS WIRE)--Fitch Ratings has affirmed 20 classes of J.P. Morgan Chase Commercial Mortgage Securities Corp. commercial mortgage pass-through certificates, series 2005-CIBC13. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
Fitch modeled losses of 16.8% of the remaining pool; expected losses on the original pool balance total 15%, including $122.2 million (4.5% of the original pool balance) in realized losses to date. Fitch has designated 69 loans (40.4%) as Fitch Loans of Concern, which includes 18 specially serviced assets (17.4%).
As of the March 2014 distribution date, the pool's aggregate principal balance has been reduced by 34.2% to $1.79 billion, from $2.72 billion at issuance. Per the servicer reporting, five loans (1% of the pool) are defeased. Interest shortfalls are currently affecting classes C through NR.
The largest contributor to expected losses remains the DRA-CRT Portfolio I (7.5% of the pool), which is currently real estate owned (REO). Of the original 16 properties securing the loan, only two remain, both of which are located in Rockville, MD. The other 14 properties were sold in the fourth quarter of 2012 (4Q'12). As of February 2014, the two remaining properties are 94% and 53% occupied. Per the special servicer, leasing agents continue to market the properties for lease and several tours have been conducted, but there are no on-going lease negotiations. Recent valuations of the properties were significantly below the remaining loan balance.
The second largest contributor to expected losses is the Investcorp Portfolio (2.4%), which is currently REO. Of the original five properties securing the loan, three have been sold; the remaining two properties are located in Pennsylvania. Of the remaining properties, one is well occupied at 92%, while the other property is underperforming the market with an occupancy of only 37%. The special servicer remains focused on leasing up and stabilizing the properties before marketing the assets for sale.
The third largest contributor to expected losses is the Swan Lake Mobile Home Park loan (2.2%), which is secured by a mobile home community consisting of 717 units located in Mira Loma, CA. The property's poor performance is a result of declining occupancy and below market rents. As of December 2013, the property was 93% occupied with average rents of $719 per unit. Per Reis, the San Bernardino/Riverside Riverside County/Corona submarket (2Q'13) exhibited average asking and effective rents of $1,195 and $1,160 per unit, respectively. The average vacancy rate is 2.8%. Average rents at the subject are currently $320 per unit below the market average. Per the most recent site inspection, the property was rated to be in fair condition with some deferred maintenance items.
Rating Outlooks on classes A-1A and A-3A1 through A-SB, remain Stable due to increasing credit enhancement and continued paydown.
Fitch affirms the following classes and assigns or revises Rating Outlooks and REs as indicated:
--$186.3 million class A-1A at 'AAAsf', Outlook Stable;
--$107.6 million class A-3A1 at 'AAAsf', Outlook Stable;
--$25 million class A-3A2 at 'AAAsf', Outlook Stable;
--$751.7 million class A-4 at 'AAAsf', Outlook Stable;
--$24.5 million class A-SB at 'AAAsf', Outlook Stable;
--$272.1 million class AM at 'BBBsf', Outlook to Stable from Negative;
--$187 million class AJ at 'CCCsf', RE 75%;
--$54.4 million class B at 'CCsf', RE 0%;
--$23.8 million class C at 'Csf', RE 0%;
--$44.2 million class D at 'Csf', RE 0%;
--$34 million class E at 'Csf', RE 0%;
--$37.4 million class F at 'Csf', RE 0%;
--$30.6 million class G at 'Csf', RE 0%;
--$10.6 million 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-2FL and A-2FX certificates have paid in full. Fitch does not rate the class NR certificates. Fitch previously withdrew the ratings on the interest-only class X-1 and X-2 certificates.
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. 18, 2012).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria