Press Release

DBRS Assigns Provisional Ratings to JPMCC 2012-C8

CMBS
September 20, 2012

DBRS has today assigned provisional ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2012-C8 (the Certificates), to be issued by J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-C8 (JPMCC 2012-C8). The trends are Stable.

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)
-- Class A-S at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (sf)
-- Class EC at A (sf)
-- Class D at BBB (high) (sf)
-- Class E at BBB (low) (sf)
-- Class F at BB (sf)
-- Class G at B (sf)

Classes X-B, A-S, B, C, EC, D, E, F and G are privately placed pursuant to Rule 144a.

The Class X-A and Class X-B balances are notional. DBRS ratings on interest-only certificates address the likelihood of receiving interest based on the notional amount outstanding. DBRS considers the interest-only certificate’s position within the transaction payment waterfall when determining the appropriate rating. The Class A-S, Class B and Class C Certificates are exchangeable with the Class EC Certificates.

The collateral consists of 43 fixed-rate loans secured by 84 multifamily properties, mobile home parks and commercial properties. The portfolio has a balance of $1,136,579,989. The pool consists of relatively low-leverage financing, with a DBRS weighted-average term debt service coverage ratio (DSCR) and debt yield of 1.53 times (x) and 9.4%, respectively. Based on the DBRS sample of 28 loans, representing 86.2% of the pool, the loans were, in general, prudently underwritten. The average DBRS net cash flow (NCF) variance was -6.3%. The refinance risk of the transaction is considered low, as the underlying loans will amortize 14.8% by their respective loan maturities. Furthermore, the pool has a weighted-average DBRS exit debt yield of 11.1%. The pool has a relatively high concentration of retail properties (26.2% of the pool). However, the transaction’s retail assets have a weighted-average DBRS Term DSCR of 1.86x, allowing for material deterioration of cash flows before there would be a debt service shortfall. Additionally, the pool’s retail loans have a high weighted-average DBRS Exit Debt Yield of 12.0%.

The ratings assigned to the Certificates by DBRS are based exclusively on the credit provided by the transaction structure and underlying trust assets. All classes will be subject to ongoing surveillance, which could result in upgrades or downgrades by DBRS after the date of issuance.

Finalization of the ratings is contingent upon receipt of final documents conforming to information already received.

Notes:
All figures are in U.S. dollars unless otherwise noted.

This rating did not include issuer participation and is based solely on publicly available information.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodology is CMBS Rating Methodology, which can be found on our website under Methodologies.

Ratings

  • US = Lead Analyst based in USA
  • CA = Lead Analyst based in Canada
  • EU = Lead Analyst based in EU
  • UK = Lead Analyst based in UK
  • E = EU endorsed
  • U = UK endorsed
  • Unsolicited Participating With Access
  • Unsolicited Participating Without Access
  • Unsolicited Non-participating

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