NEW YORK--(BUSINESS WIRE)--Fitch Ratings has downgraded one class and affirmed five classes of J.P. Morgan Chase Commercial Mortgage Securities Corp. series 2001-CIBC1 commercial mortgage pass-through certificates. A detailed listing of rating actions follows at the end of this release.
KEY RATING DRIVERS
The downgrade to class G reflects the increased likelihood of losses to the class as realized losses have eroded credit enhancement since Fitch's last rating action. The pool remains concentrated as only seven of the original 167 loans remain. Fitch modeled losses of 35.8% of the remaining pool; expected losses on the original pool balance total 6.3%, including $58.4 million (5.8% of the original pool balance) in realized losses to date. Fitch has designated three loans (70.7%) as Fitch Loans of Concern, which includes two specially serviced assets (43%).
As of the November 2014 distribution date, the pool's aggregate principal balance has been reduced by 98.3% to $17.2 million from $1.01 billion at issuance. Per the servicer reporting, one loan (1.5% of the pool) is defeased. Interest shortfalls are currently affecting classes H through NR.
The largest contributor to expected losses is a 45,000 square foot (sf) retail property (17.6% of pool) located in Akron, OH. The property was previously 100% occupied by Dicks Sporting Goods which vacated the property upon their lease expiration in November 2013. The property remains completely vacant and foreclosure was completed in September 2014. Since becoming real estate owned (REO), the property was marketed for sale and has gone under contract with an expected closing to occur within the next 60 days.
The largest remaining loan in the pool is secured by a 70,099 sf retail center in Fresno, CA. The largest tenant who occupies 32,080 sf (46% of net rentable area [NRA]) is no longer making payments. The next two largest tenants, which combine for 14.9% of the NRA have matured leases with no update to their current occupancy status. The master servicer anticipates a transfer to the special servicer as payments have begun to become delinquent. As of year-end 2013 the property had a net operating income debt service coverage ratio of 1.3X.
RATING SENSITIVITIES
The rating on the class G notes may be subject to further downgrades as losses are realized.
Fitch downgrades the following class and assigns a Recovery Estimate (REs) as indicated:
--$14.6 million class G to 'Csf' from 'CCCsf', RE 75%.
Fitch affirms the following classes as indicated:
--$2.6 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%.
The class A-1, A-2, A-3, B, C, D, E, X-2 and F certificates have paid in full. Fitch does not rate the class NR certificate.
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 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. 10, 2014).
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=812608
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=950055
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