Fitch Affirms JPMCC 2005-CIBC12

NEW YORK--()--Fitch Ratings has affirmed 19 classes of J.P. Morgan Chase Commercial Mortgage Securities Corp. (JPMCC), series 2005-CIBC12. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are based on stable performance of the underlying collateral and sufficient credit enhancement since the last rating action.

Fitch modeled losses of 6.3% of the remaining pool; expected losses on the original pool balance total 11.9%, including $179.8 million (8.1% of the original pool balance) in realized losses to date. Fitch has designated 37 loans (24%) as Fitch Loans of Concern, which includes 10 specially serviced assets (8.8%).

As of the June 2014 distribution date, the pool's aggregate principal balance has been reduced by 40.6% to $1.32 billion from $2.22 billion at issuance. Per the servicer reporting, nine loans (5.6% of the pool) are defeased. Interest shortfalls are currently affecting classes D through NR.

The largest contributor to expected losses is a specially-serviced asset (3% of the pool), which is secured by a 289,000 square foot (sf) office complex located in Atlanta, GA. The loan transferred to special servicing in April 2012 and became real estate owned (REO) as of March 2014. The loan went into default following a notice from the sole tenant that it intended to downsize its lease to 83% (of the net rentable area [NRA]) at market rates, which were significantly lower than the previously executed rental rate. The special servicer reports that it recently signed a new tenant for 5.8% and the property is now 88.8% occupied. The special servicer also reports it is in the process of listing the property for sale.

The next largest contributor to expected losses is a specially-serviced asset (0.7%), which is secured by an 87,330 sf office building located in New London, CT. The loan transferred to the special servicer in February 2007 and became REO in September 2013. The special servicer reports that the property is being managed and leased by Northeast Property Group and it is 60% occupied as of April 30, 2014.

The third largest contributor to expected losses is a specially-serviced asset (0.8%) which is secured by a 104,013 sf suburban office building located in Montvale, NJ. The loan transferred to the special servicer in November 2013 for imminent default. Title to the property was transferred to the trust via a deed-in-lieu, and the asset became REO as of June 2014. The special servicer reports the property's occupancy was 63.4% as of May 29, 2014.

RATING SENSITIVITIES

Rating Outlooks on classes A-3A2 through B remain Stable due to increasing credit enhancement and continued paydown. A future upgrade is possible on classes A-J and B due to sufficient credit enhancement for their respective ratings; limited by the increasing concentration risk with approximately 80% of the remaining pool maturing before year-end 2015.

Fitch affirms the following classes and revises REs as indicated:

--$46.9 million class A-3A2 at 'AAAsf', Outlook Stable;

--$32.7 million class A-3B at 'AAAsf', Outlook Stable;

--$649.3 million class A-4 at 'AAAsf', Outlook Stable;

--$18.2 million class A-SB at 'AAAsf', Outlook Stable;

--$216.7 million class A-M at 'AAAsf', Outlook Stable;

--$162.5 million class A-J at 'BBBsf', Outlook Stable;

--$43.3 million class B at 'Bsf', Outlook Stable;

--$19 million class C at 'CCCsf', RE 100%;

--$32.5 million class D at 'CCCsf', RE 35%.

--$27.1 million class E at 'CCsf', RE 0%;

--$19.2 million class F at 'Dsf', RE 0%;

--$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%;

--$50 million class UHP at 'B-sf', Outlook Stable.

The class A-1, A-2 and A-3A1 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 21, 2014);

--'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

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=839158

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
Sean Gibbs, +1-212-908-0311
Associate Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Christopher Bushart, +1-212-908-0606
Senior Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Sean Gibbs, +1-212-908-0311
Associate Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Christopher Bushart, +1-212-908-0606
Senior Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com