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Fitch Affirms JP Morgan Chase Commercial Mortgage Securities Trust 2010-C1

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed all classes of JP Morgan Chase Commercial Mortgage Securities Trust commercial mortgage pass through certificates, series 2010-C1 and revised rating outlooks on three classes. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Fitch's affirmations are based on the generally stable performance of the underlying collateral pool since issuance. As of the June 2014 distribution date, the pool's certificate balance has paid down 14.2% to $614.7 million from $716.3 million at issuance. There are currently 33 loans collateralized by 89 properties, one loan is specially serviced (1.6%) and one is defeased (2.7%).

The specially serviced loan is a retail property in Mountain Hills, AZ. The loan transferred to the special servicer in May 2014 at the request of the borrower. The property performance has declined significantly with year-end 2013 debt service coverage ratio (DSCR) falling to 0.45x from 1.71x at year-end (YE) 2012. As of January 2014, the property was 76% occupied, compared to 85% at YE2013. The occupancy is expected to decline further when Ross Dress for Less, a major tenant that occupies 21.5% of the property, is expected to vacate at its January 2015 lease expiration. The loan remains current.

Fitch continues to have concerns over the performance of the largest loan in the pool, The Gateway at Salt Lake City (15.7% of the pool). The property is a 623,972 square foot (sf) retail center located in downtown Salt Lake City, UT, and is anchored by Dick's Sporting Goods, Barnes & Noble, and Gateway Theaters. The property faces strong competition from City Creek, a nearby retail center that opened in 2012. As of May 2014, the property was 78.4% occupied, compared to 83% at YE2013, 85.5% at YE2012 and 93% at YE2011. The property was 96.4% occupied at issuance. The servicer reported YE2013 DSCR was 1.09x, compared to 1.36x at YE2012. The decline in performance is primarily due to an increase in operating expenses and decline in net operating income (NOI) as a result of co-tenancy clauses that allow tenants to pay percentage rent.

RATING SENSITIVITIES

The Rating Outlooks for all investment grade classes remain Stable as no rating actions are expected since the majority of the pool has maintained performance consistent with issuance and many of the loans have low leverage. The revised Rating Outlooks for classes F, G and H to Negative from Stable indicate that future downgrades are possible if performance deteriorates further.

Fitch affirms the following classes and revises Rating Outlooks as follows:

--$314.5 million class A-1 at 'AAAsf'; Outlook Stable;

--$131.3 million class A-2 at 'AAAsf'; Outlook Stable;

--$61.5 million class A-3 at 'AAAsf'; Outlook Stable;

--Interest Only class X-A at 'AAAsf'; Outlook Stable.

--$16.1 million class B at 'AAsf'; Outlook Stable;

--$26.9 million class C at 'A-sf'; Outlook Stable;

--$14.3 million class D at 'BBBsf'; Outlook Stable;

--$16.1 million class E at 'BBB-sf'; Outlook Stable;

--$9 million class F at 'BBsf'; Outlook to Negative from Stable;

--$7.2 million class G at 'B+sf'; Outlook to Negative from Stable;

--$6.3 million class H at 'B-sf'; Outlook to Negative from Stable.

Fitch does not rate classes NR and X-B.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=837900

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Amy Gan
Director
+1-212-908-9143
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com