NEW YORK--(BUSINESS WIRE)--Fitch Ratings has upgraded one class and affirmed four classes of J.P. Morgan Chase Commercial Mortgage Securities Corp. 2001-CIBC3 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The upgrade to the class H notes reflects the expected continued paydown due to amortization as well as defeased collateral supporting the notes. Fitch modeled losses of 2.9% of the remaining pool; expected losses on the original pool balance total 4.2%, including $36.4 million (4.2% of the original pool balance) in realized losses to date. There are a total of nine loans remaining in the pool, two of which are defeased (56.5% of the pool). While the pool does not include any specially serviced loans, Fitch has identified three (16.3%) Fitch Loans of Concern (FLOC).
As of the March 2015 distribution date, the pool's aggregate principal balance has been reduced by 99% to $9 million from $867.5 million at issuance. Interest shortfalls are currently affecting classes J through NR.
The largest contributor to expected losses (7.6% of the pool) is secured by an 18-unit multifamily property located in Brewster, NY. The servicer-reported occupancy increased to 94.7% at year-end (YE) 2013 from 89% at YE 2012. However, debt service coverage ratio (DSCR) declined to 0.67x from 0.93x during the same period due to increased repairs and maintenance expenses in conjunction with lower rental income.
RATING SENSITIVITY
The Rating Outlooks on class H remains Stable due to increasing credit enhancement, partial repayment from defeased collateral and continued pay down (all loans except the largest contributor to expected loss are fully amortizing). Although current credit enhancement is high, the rating on Class H is not likely to be upgraded further due to increasing pool concentration. Downgrades to class H are not likely unless losses are significantly above expectations.
Fitch upgrades the following class:
--$6.3 million class H to 'Asf' from 'BBsf'; Outlook Stable.
Fitch affirms the following classes:
--$2.7 million class J at 'Dsf'; RE 40%;
--$0 class K at 'Dsf', RE0;
--$0 class L at 'Dsf', RE0;
--$0 class M at 'Dsf', RE0.
The class A-1, A-2, A-3, X-2, B, C, D, E, F and G certificates have paid in full. Fitch does not rate the class NR certificates. Fitch previously withdrew the rating on the interest-only class X-1 certificates.
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:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=981597
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