Fitch Affirms JPMC 2002-CIBC5; Revises Outlook

Business Wire

NEW YORK--(BUSINESS WIRE)--

Fitch Ratings has affirmed JP Morgan Chase Commercial Mortgage Securities Corporation's (JPMC) commercial mortgage pass-through certificates, series 2002-CIBC5. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are attributed to increased credit enhancement levels offset by fewer, more concentrated loans (by unpaid principal balance) remaining in the pool. Based on Fitch's analysis, some of the remaining loans may have difficulty refinancing their existing debt.

Fitch modeled losses of 2.2% of the remaining pool; expected losses on the original pool balance total 2.4%, including losses already incurred. The pool has experienced $23.2 million (2.3% of the original pool balance) in realized losses to date. The pool has become highly concentrated with only 12 loans remaining, compared to 46 at last review. Fitch has designated three loans (19.9%) as Fitch Loans of Concern, which includes one specially serviced asset (5.4%).

RATING SENSITIVITIES

The Stable Rating Outlook on classes G, H and J indicates that despite increased credit enhancement from principal paydown and defeasance, upgrades are not likely due to increased concentration of loans in the pool and the greater risk of adverse selection. The Negative Outlook on classes M and N indicates that future downgrades are possible if the collateral performance deteriorates.

As of the June 2013 distribution date, the pool's aggregate principal balance has been reduced by 94.3% to $56.9 million from $1 billion at issuance. Two loans (35.1% of the pool) are defeased. Interest shortfalls are currently affecting classes M through NR.

The largest remaining non-defeased loan is secured by a 384,763 industrial property in Las Vegas, NV (26.4% of the pool). The distribution facility is 100% leased to a single tenant - Southern Wine & Spirits of America on a triple-net (NNN) lease through year-end 2020. As of 3rd quarter 2012, the servicer reported DSCR was 1.47x, in line with performance from issuance.

The second largest remaining non-defeased loan is secured by a 118,298sf retail property in Bedford, TX (23.9%). The center's anchor, Tom Thumb Grocery, occupies 41% of the NRA until August 2017. All tenants are under NNN leases. As of year-end 2012, the servicer reported DSCR was 0.88x, compared to 0.80x at YE11 and 1.00x at YE10. The poor performance is due to the weak market. The borrower has to offer rent concessions to compete in the market and maintain existing tenancy. As of 1st quarter 2013 rent roll, the property was 87.9% occupied.

Fitch affirms the following classes and revises the Rating Outlook as indicated:

--$12.6 million class J at 'BBB-sf'; Outlook to Stable from Negative.

In addition, Fitch affirms the following classes:

--$10.1 million class G at 'AA-sf'; Outlook Stable;

--$18.8 million class H at 'BBB+sf'; Outlook Stable;

--$5 million class K at 'BBsf'; Outlook Negative;

--$5 million class L at 'Bsf'; Outlook Negative;

--$5.3 million class M at 'Dsf'; RE 0%;

--$0 class N at 'Dsf'; RE 0%.

The classes A-1, A-2, B, C, D, E, F and the interest only X-2 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. 18, 2012 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' (May 24, 2013);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=793719

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Contact:
Primary Analyst:
Amy Gan, +1-212-908-9143
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Christopher Bushart, +1-212-908-0606
Senior Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com
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