Fitch Upgrades One Class of JPMC 2002-CIBC5

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has upgraded one class and affirmed all other classes of 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 upgrade of class H to 'AAAsf' reflects high credit enhancement due to scheduled amortization and defeasance (37.9%). In addition, interest shortfalls on class H are unlikely based on Fitch's stressed analysis and interest shortfall sensitivity testing.

Fitch modeled losses of 4.1% of the remaining pool; expected losses on the original pool balance total 2.5%, including losses already incurred (2.3% of the original pool balance). Currently, there are 12 loans remaining, three of which are defeased. Four of the remaining loans (27.6%) have been identified as Fitch loans of concern due to performance falling below expectations. There are no delinquent or specially serviced loans.

RATING SENSITIVITIES

Ratings on classes G, H, and J are expected to remain stable, given their senior position in the capital structure. Due to increased concentration for the remaining pool and the associated greater risk of adverse selection, future downgrades to classes K and L are possible should the collateral performance deteriorate.

As of the April 2015 distribution date, the pool's aggregate principal balance has been reduced by 95.3% to $47.1 million from $1.022 billion at issuance. Interest shortfalls are currently affecting classes M and NR.

The largest remaining non-defeased loan is secured by a 384,763 square foot (sf) industrial property in Las Vegas, NV (22.2%). The distribution facility is 100% leased to a single tenant - Southern Wine & Spirits of America, on a triple-net (NNN) lease until year-end (YE) 2020. The loan is fully amortizing. As of third quarter 2014 (3Q14), the servicer reported debt service coverage ratio (DSCR) was 1.47x, which is in line with performance from issuance.

The second largest remaining non-defeased loan is secured by a 118,298 sf retail property in Bedford, TX (10.5%). The center's anchor, Tom Thumb Grocery, occupies 41% of the net rentable area (NRA) until August 2017. All tenants are under NNN leases. The property continues to perform below expectations, with a DSCR below 1.0x since 2011. As of 3Q14, the servicer-reported DSCR was 0.89x, compared to 0.88x at YE 2013 and YE 2012, 0.8x at YE 2011 and 1.00x at YE 2010. The poor performance is due to the weak market conditions. The borrower has to offer rent concessions to compete in the market and maintain existing tenancy. As of the YE 2014 rent roll, the property was 92.1% occupied, compared to 92% a year ago.

Fitch upgrades the following class as indicated:

--$18.8 million class H to 'AAAsf' from 'Asf'; Outlook Stable.

Fitch affirms the following classes as indicated:

--$0.7 million class G at 'AAAsf'; Outlook Stable;

--$12.6 million class J at 'BBBsf'; Outlook Stable

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

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

--$5.4 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 is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014);

--'Global Structured Finance Rating Criteria' (March 31, 2015).

Applicable Criteria and Related Research:

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=984230

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.

Fitch Ratings
Primary Analyst:
Amy Gan, +1-212-908-9143
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson:
Christopher Bushart, +1-212-908-0606
Senior Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
[email protected]

Source: Fitch Ratings

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