NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 13 classes of J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-C8, commercial mortgage pass-through certificates series 2012-C8 (JPMCC 2012-C8). A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are due to stable pool performance. 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 69.5% of the transaction. Fitch has designated two (7.0%) Fitch Loans of Concern (FLOC).
As of the July 2014 distribution date, the pool's aggregate principal balance has been reduced by 3.7% to $1.1 billion.
The largest loan in the pool (11.4%) is secured by an 1.0 million square foot (sf) interest in a 1.2 million sf regional mall located in Springfield, MO. Anchors include: JC Penney, Dillard's, Dillard's Mens & Home, Macy's and Sears (non-collateral). As of year-end (YE) 2013, the servicer-reported collateral occupancy and debt service coverage ratio (DSCR) was 96.0% and 3.42x, respectively.
The second largest loan in the pool (9.8%) is secured by a 280,299 sf office building located in Seattle, WA. The property is leased to multiple tenants under three primary General Services Administration (GSA) leases, which expire between 2019 and 2022. As of YE 2013, occupancy and DSCR were a reported 94.1 % and 1.55x respectively.
The larger of the two FLOCs (6.4%) is secured by a portfolio of industrial properties. The loan was the second largest loan in the pool at issuance and is currently the fourth largest loan. The loan was originally backed by seven industrial properties located in two states (Connecticut and Massachusetts); one property, which had been fully leased to Kraft and had been vacant at issuance was released in September 2013. The remaining portfolio is 98% leased with 38.5% scheduled to expire in 2015. Per the master servicer, lease renewal discussions regarding the largest lease (20.9%) will begin towards the end of this year. As of YE 2013 DSCR was reported at 1.90x; NOI for the remaining properties has increased 7.3% since issuance.
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 'JPMCC 2012-C8' (Nov. 28, 2012), available at www.fitchratings.com.
Fitch affirms the following classes as indicated:
--$34.4 million class A-1 at 'AAAsf'; Outlook Stable;
--$189.2 million class A-2 at 'AAAsf'; Outlook Stable;
--$426.1 million class A-3 at 'AAAsf'; Outlook Stable;
--$103.6 million class A-SB at 'AAAsf'; Outlook Stable;
--$898 million class X-A* at 'AAAsf'; Outlook Stable;
--$102.3 million class A-S** at 'AAAsf'; Outlook Stable;
--$56.8 million class B** at 'AAsf'; Outlook Stable;
--$44 million class C** at 'Asf'; Outlook Stable;
--$203 million class EC** at 'Asf'; Outlook Stable.
--$35.5 million class D at 'BBB+sf'; Outlook Stable;
--$32.7 million class E at 'BBB-sf'; Outlook Stable;
--$15.6 million class F at 'BBsf'; Outlook Stable;
--$17 million class G at 'Bsf'; Outlook Stable.
*Notional amount and interest only.
**Class A-S, class B and class C certificates may be exchanged for class EC certificates, and class EC certificates may be exchanged for Class A-S, class B and class C certificates.
Fitch does not rate the $36,938,989 class NR certificates or the $238,681,989 interest only class X-B.
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: 'JPMCC 2012-C8 --Appendix' (Nov. 28, 2012).
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' (Aug. 4, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria