NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 19 classes of JPMBB Commercial Mortgage Securities Trust, series 2015-C29. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are based on the stable performance of the underlying collateral pool. There have been no delinquent or specially serviced loans since issuance. The stable performance reflects no material changes to pool metrics since issuance, therefore the original rating analysis was considered in affirming the transaction.
As of the April 2016 distribution date, the pool's aggregate principal balance has been reduced by 0.48% to $979.7 million from $984.5 million at issuance. Fitch has designated one loan in the pool as a Fitch Loan of Concern.
The Fitch Loan of Concern (6.1% of the pool) is secured by One City Centre, a 602,122 sf office building located in Houston, TX. The property has been affected by low oil prices and their impact on energy businesses. The second largest tenant, Energy XXI Services Ltd. (28.4% NRA) recently filed for chapter 11 bankruptcy protection. The loan was structured with a $4 million upfront reserve for leasing costs related to Energy XXI's lease as the original term expires in December 2022; this reserve will help support property cash flow as more clarity is gained with Energy XXI's restructuring. As of December 2015, occupancy was 85%. Fitch will continue to monitor the property's performance.
The largest loan in the pool (7.3%), 2025 M Street, located in Washington, DC, is secured by a 191,248 sf office building, built in 1971 and renovated in 1995. The property is located across the street from the CBS News Bureau. It is on the western end of the CBD and has good access to fiber-optic networks. Tenants in the area are media related and include CBS, BBC, NHK, and Al Jazeera. The property was 100% occupied as of December 2015. Two tenants, including the largest (38%) have termination options, which may be exercised in September; both tenants are paying below market rents.
The ninth largest loan in the pool, Lenox Towers (2.8%), is collateralized by a 378,838 sf office building located in Atlanta, GA. The subject consists of two adjacent 17-story office towers connected by an outdoor plaza and a parking garage. Per the December 2015 rent roll, 59% of the net rentable area (NRA) rolls in 2017. The loan is structured with ongoing annual rollover reserves of $500,000, capped at $1.5 million. As of December 2015, occupancy was in line with issuance at 80%. Fitch will continue to monitor the rollover over the next year.
RATING SENSITIVITIES
All classes maintain Stable Outlooks. Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch affirms the following classes:
--$44.2 million class A-1 at 'AAAsf'; Outlook Stable;
--$213.1 million class A-2 at 'AAAsf'; Outlook Stable;
--$60 million class A-3A1 at 'AAAsf'; Outlook Stable;
--$75 million class A-3A2 at 'AAAsf'; Outlook Stable;
--$223.1 million class A-4 at 'AAAsf'; Outlook Stable;
--$69.1 million class A-SB at 'AAAsf'; Outlook Stable;
--$64.1 million class A-S at 'AAAsf'; Outlook Stable;
--$54.1 million class B at 'AA-sf'; Outlook Stable;
--$44.3 million class C at 'A-sf'; Outlook Stable;
--$162.4 million class EC at 'A-sf'; Outlook Stable;
--$52.9 million class D at 'BBB-sf'; Outlook Stable;
--$20.9 million class E at 'BBsf'; Outlook Stable;
--$11.1 million class F at 'Bsf'; Outlook Stable;
--$747.9 million* class X-A at 'AAAsf'; Outlook Stable;
--$54.1 million* class X-B at 'AA-sf'; Outlook Stable;
--$44.3 million* class X-C at 'A-sf'; Outlook Stable;
--$52.9 million* class X-D at 'BBB-sf'; Outlook Stable;
--$20.9 million* class X-E at 'BBsf'; Outlook Stable;
--$11.1 million* class X-F at 'Bsf'; Outlook Stable.
*Notional amount and interest-only.
Fitch does not rate the classes NR and X-NR certificate.
Class A-S, B and C certificates may be exchanged for class EC certificates, and class EC certificates may be exchanged for class A-S, B and C certificates.
Additional information is available at www.fitchratings.com.
Applicable Criteria
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158
Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 28 May 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748781
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952
U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1003992
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1003992
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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