Jan 18 - Fitch Ratings has downgraded three classes and affirmed 10 classes
of JP Morgan Chase Commercial Mortgage Securities (JP Morgan) commercial
mortgage pass-through certificates series 2003-CIBC6. A detailed list of rating
actions follows at the end of this press release.
Key Rating Drivers
The downgrades reflect an increase in Fitch expected losses across the pool.
Fitch modeled losses of 2.8% of the remaining pool; expected losses on the
original pool balance total 2.7%, including losses already incurred. The pool
has experienced $7.4 million (0.7% of the original pool balance) in realized
losses to date. Fitch has designated 19 loans (12.2%) as Fitch Loans of Concern,
which includes three specially serviced assets (1.6%).
As of the December 2012 distribution date, the pool's aggregate principal
balance has been reduced by 25.4% to $793.2 million from $1.06 billion at
issuance. Per the servicer reporting, 28 loans (42.4% of the pool) are defeased.
Interest shortfalls are currently affecting classes N through NR.
The largest contributor to expected losses is secured by a 43,169 square foot
(SF) office property in Sacramento, CA (0.7% of the pool). The collateral had
transferred to special servicing in April 2012 due to payment default. The
property experienced cash flow issues when the buildings largest tenant,
Sacramento County (48% of the net rentable area ), had vacated upon its
lease expiration in February 2012. The property became REO in November 2012.
The servicer is currently working to stabilize the property and has hired a
third-party management company to assist with property management and leasing.
The next largest contributor to expected losses is secured by a portfolio of
three Colorado mobile home parks containing a total of 246 pads (0.5%). The
subject loan transferred to special servicing in January 2011 due to payment
default. The entire portfolio is currently 51% occupied. One of the parks
located in Fort Morgan, CO (80 units; 27% of allocated balance) has been forced
to shut down because of water safety issues with remaining occupancy currently
at 11%. A receiver is in place, and the servicer is pursuing foreclosure.
Fitch downgrades the following classes and assigns Recovery Estimates (REs) as
--$5.2 million class L to 'CCCsf' from 'B-sf'; RE 100%;
--$3.9 million class M to 'CCsf' from 'CCCsf'; RE 50%;
--$1.3 million class N to 'Csf' from 'CCsf'; RE 0%.
Fitch affirms the following classes but revises Rating Outlooks as indicated:
--$15.6 million class H at 'BBBsf'; Outlook to Negative from Stable;
--$5.2 million class J at 'BBsf'; Outlook to Negative from Stable;
--$7.8 million class K at 'Bsf'; Outlook to Negative from Stable.
Fitch affirms the following classes as indicated:
--$610.6 million class A-2 at 'AAAsf'; Outlook Stable;
--$31.2 million class B at 'AAAsf'; Outlook Stable;
--$32.5 million class C at 'AAAsf'; Outlook Stable;
--$11.7 million class D at 'AAAsf'; Outlook Stable;
--$14.3 million class E at 'AAAsf'; Outlook Stable;
--$10.4 million class F at 'AAsf'; Outlook Stable;
--$13 million class G at 'Asf'; Outlook Stable.
The class A-1 certificate and the interest only class X-2 certificate have paid
in full. Fitch does not rate the class NR, BM-1, BM-2, BM-3, AC-1, AC-2 and AC-3
certificates. Fitch previously withdrew the rating on the interest-only class