June 27 (The following statement was released by the rating agency)
Fitch Ratings has affirmed six classes of J.P. Morgan Chase Commercial Mortgage Securities
Corp.'s (JPMC) commercial mortgage pass-through certificates, series 2001-C1. A detailed list of
rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations reflect Fitch expected losses and the increasingly concentrated
nature and adverse selection of the remaining loans in the pool. Fitch modeled
losses of 16.3% of the remaining pool; expected losses on the original pool
balance total 4.8%, including losses already incurred. The pool has experienced
$47.1 million (4.4% of the original pool balance) in realized losses to date.
Fitch has designated two loans (37%) as Fitch Loans of Concern, which includes
one specially serviced asset (36.1%), the second largest loan in the pool.
As of the June 2013 distribution date, the pool's aggregate principal balance
has been reduced by 97.3% to $28.8 million from $1.07 billion at issuance. The
remaining pool is extremely concentrated with seven of the original 180 loans
remaining. As of the June 2013 remittance date, one loan (15.9% of the pool)
has defeased since issuance. Interest shortfalls are currently affecting classes
J through NR.
The rating on class H is expected to remain stable as the class benefits from
defeasance and has sufficient credit enhancement to offset Fitch expected
losses. The distressed class J may be subject to further rating actions as
losses are realized
The specially serviced loan (36.1% of the pool) is secured by a 200-unit
multifamily property in Holland, OH. The loan had transferred to special
servicing in June 2010 for monetary default. The borrower had filed for
bankruptcy in August 2011. The bankruptcy stay was lifted in May 2012 and the
servicer was in process of pursuing foreclosure; however, the borrower filed for
bankruptcy for the second time in November 2012. The servicer reported
occupancy at 96% as of June 2013.
Fitch affirms the following classes as indicated:
--$18.7 million class H at 'BBBsf'; Outlook Stable;
--$9 million class J at 'Csf'; RE 45%.
--$1.1 million class K at 'Dsf'; RE 0%;
--Class L at 'Dsf'; RE 0%;
--Class M at 'Dsf'; RE 0%;
--Class N at 'Dsf'; RE 0%.
The balances on classes L, M, and N have been reduced to zero due to realized
losses. The class A-1, A-2, A-3, B, C, D, E, F, G, NC-1 , NC-2, and X-2
certificates have paid in full. Fitch does not rate the class NR certificate.
Fitch previously withdrew the rating on the interest-only class X-1 certificate.
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