NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 13 classes of J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-C6, commercial mortgage pass-through certificates, series 2012-C6. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are based on stable performance of the underlying collateral pool. There have been no delinquent or specially serviced loans since issuance. As of the February 2015 distribution date, the pool's aggregate principal balance has been reduced by 4% to $1.09 billion from $1.13 billion at issuance. Fitch has designated two loans (7.4% of the pool) as Fitch Loans of Concern, which includes two top 15 loans.
The largest loan of concern (4.9% of the pool) is the 8080 & 9400 North Central Expressway loan, a two-building office portfolio with total 673,188 square feet (sf) located in suburban Dallas, TX. The largest tenants are Healthtexas Provider Network (92,167 sf, expires November 2022) and Compass Bank (53,938 sf, expires September 2023). Prior to issuance, the property had historically struggled to maintain stable occupancy. The property has benefitted from some recent leasing activity; however, occupancy remains low at 73% as of December 2014, which is down from 77% as of December 2012. At issuance, the physical vacancy was 80%; Fitch assumed a 77.2% stabilized occupancy estimate in its cash flow analysis. The decline in occupancy from issuance, which was cited as a concern due to near-term rollover, is partially mitigated by an ongoing leasing cost reserve of $800,000 per year, capped at $2.4 million. The debt service coverage ratio (DSCR) was 1.24x as of year-end (YE) 2014.
The next loan of concern (2.5% of the pool) is the Oak Ridge Office Portfolio, a 448,965 sf seven building office portfolio located in Oak Ridge, TN, approximately 25 miles west of Knoxville. The portfolio consists of Oak Ridge Corporate Center I and Oak Ridge Technical Center. The city of Oak Ridge is supported by a historical presence of both the federal government and government contractors as major employers in the region as a center of scientific research and technology. Occupancy at the subject has declined to 74% as of the December 2014 rent roll compared to 91% as of YE 2013. The decline in occupancy is due to the 2014 move-out of a large government-related tenant. The tenant move-out was for business reasons and marketing activities are in progress for the vacant space. DSCR was 1.78x as of YE 2013 and 1.74x as of year-to-date (YTD) third quarter 2014 (3Q'14); however, the DSCR is expected to decline in the near term as the decline in occupancy is reflected in future financials.
The Rating Outlooks remain Stable. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's overall portfolio-level metrics. Additional information on rating sensitivity is available in the report 'JPMCC 2012-C6' (April 11, 2012), available at www.fitchratings.com.
Fitch affirms the following classes as indicated:
--$35 million class A-1 at 'AAAsf', Outlook Stable;
--$145.2 million class A-2 at 'AAAsf', Outlook Stable;
--$491.7 million class A-3 at 'AAAsf', Outlook Stable;
--$102.9 million class A-SB at 'AAAsf', Outlook Stable;
--$99.2 million class A-S at 'AAAsf', Outlook Stable;
--$56.7 million class B at 'AAsf', Outlook Stable;
--$25.5 million class C at 'A+sf', Outlook Stable;
--$28.3 million class D at 'A-sf', Outlook Stable;
--$55.3 million class E at 'BBB-sf', Outlook Stable;
--$1.4 million class F at 'BBB-sf', Outlook Stable;
--$15.6 million class G at 'BBsf', Outlook Stable;
--$18.4 million class H at 'Bsf', Outlook Stable;
--$874 million* class X-A at 'AAAsf'; Outlook Stable.
*Notional amount and interest only.
Fitch does not rate the interest-only class X-B or class NR certificates.
A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:
--'JPMCC 2012-C6 -- Appendix' (April 11, 2012).
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 then CMBS then 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
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria