Fitch Upgrades JPMCC 2004-CIBC9

CHICAGO--()--Fitch Ratings has upgraded one class and affirmed 10 classes of JP Morgan Chase Commercial Mortgage Securities Corp.'s commercial mortgage pass-through certificates 2004-CIBC9. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrade to class D reflects the defeasance of the largest loan in the pool since Fitch's last rating action. The affirmations reflect the pool concentration and the overall stable performance of the remaining loans. Currently, class D is 93% covered by defeased collateral and will be fully covered in approximately three months as the class continues to be paid down through amortization. There are only nine loans remaining, of which seven (92.6%) mature in 2022 or later. Two loans (32.3%) are defeased and six (44.1%) are fully amortizing. Based on the concentrated nature of the pool, Fitch used a deterministic stress in its analysis.

The pool has incurred $71.3 million (6.5% of the original pool balance) in realized losses to date. Fitch has designated one loan (18.3%) as a Fitch Loan of Concern. There are not any specially serviced loans. As of the April 2016 distribution date, the pool's aggregate principal balance has been reduced by 97.3% to $30.1 million from $1.1 billion at issuance. Interest shortfalls are currently affecting classes F through NR.

The largest contributor to expected losses is the Fitch Loan of Concern (18.3% of the pool). It is secured by a 81,903 square foot (sf) retail center located in Littleton, CO, which is approximately 20 miles southwest of Denver. The anchor space, which accounts for 51% of the net rentable area, is currently dark. The space was formerly occupied by Wild Oats, but the tenant continues to pay full rent as it searches for a replacement tenant to sublease. The lease runs through January 2019. Per the servicer, occupancy as of February 2016 was 86%, but physically, the property is only 54% occupied. The year-end (YE) 2015 debt service coverage ratio (DSCR) was reported to be 0.94x. The DSCR has been negatively impacted by a decrease in occupancy and rental rates.

RATING SENSITIVITIES

Rating Outlooks on classes D and E are Stable. Class D will soon be fully covered by defeased collateral and will continue to benefit from paydown as the remaining loans amortize. Fitch analysis employed a deterministic scenario to reflect the pool's exposure to single event risk associated with the Fitch Loan of Concern as well as significant concentration with only nine loans remaining. An upgrade to class E is possible if additional loans defease or pay off, but upgrades will be limited until then by pool concentration, collateral quality and the potential for future interest shortfalls. No downgrades are expected unless there is a significant deterioration in performance of any of the remaining loans.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Fitch upgrades the following classes:

--$10.5 million class D to 'AAAsf' from 'Asf'; Outlook Stable.

Fitch affirms the following classes:

--$11 million class E at 'BBsf'; Outlook Stable;

--$8.6 million class F at 'Dsf'; RE 95%;

--$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%.

The class A-1, A-2, A-3, A-4, A1-A, B and C certificates have paid in full. Fitch does not rate the class NR certificates. Fitch previously withdrew the rating on the interest-only class X 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=1004709

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1004709

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Primary Analyst
Daniel Anderson
Associate Director
+1-312-606-2305
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Daniel Anderson
Associate Director
+1-312-606-2305
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com