DBRS Confirms All Classes of JPMCC 2012-CIBX Mortgage Trust

DBRS has today confirmed all classes of JPMCC 2012-CIBX Mortgage Trust as follows:

-- Classes A-1, A-2, A-3, A-4, A-4FL, A-4FX, A-S, X-A and X-B at AAA (sf)
-- Class B at AA (sf)
-- Class C 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)

DBRS does not rate Class NR, the first loss piece. All trends are Stable.

The rating confirmations reflect the overall stability of the pool’s performance since issuance in June 2012. The pool, consisting of 49 loans experienced a 2.5% collateral reduction since issuance as a result of amortization. As of the June 2014 remittance, there are four loans on the servicer’s watchlist, representing 4.1% of the current pool balance. Since the last full surveillance review in May 2013, one loan, Doubletree by Hilton JFK Airport (Prospectus ID#12, 2.6% of the current pool balance) transferred back to the master servicer in November 2013. This loan was previously transferred to special servicing following Hilton’s termination of the property’s franchise agreement. The borrower has since rebranded the subject under the Radisson flag.

The top 15 loans have experienced a weighted average net cash flow growth of 9.5% from DBRS underwriting (UW). The weighted average debt service coverage ratio and debt yield for the pool are 1.6x and 11.1%, respectively, compared with 1.4x and 10.1% at issuance.

The largest loan of concern is the Wit Hotel (Prospectus ID#2, 6.9% of the current pool balance). This loan is secured by a 310-key, full-service hotel located in downtown Chicago. The YE2013 reported net cash flow represented a 14.1% decline from the DBRS UW, mainly attributed to an increase in expenses. Expenses related to property insurance and advertising increased 215% and 294%, respectively, from the Issuer UW. The loan is not currently on the servicer’s watchlist and the property continues to outperform its competitive set in occupancy, ADR and RevPAR, according to a YE2013 Smith Travel Research report. DBRS will monitor this loan to determine whether or not the expense increases will remain ongoing. The largest loan on the watchlist is Slate Portfolio (Prospectus ID#14, 2.2% of the current pool balance), which is secured by a five-property retail portfolio, with assets in Pennsylvania and Ohio. This loan was placed on the watchlist as a result of deferred maintenance reported at some of the collateral properties. DBRS will continue to monitor this loan for updates; however, it seems the deferred maintenance has not had an adverse impact on performance, given that the loan reported a 13.6% cash flow increase in 2013 from DBRS UW.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction, including details on the largest loans in the pool and loans on the servicer’s watchlist. The June 2014 Monthly Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

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

The applicable methodology are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies

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