DBRS Confirms All Classes of JPMCC 2012-CIBX Mortgage Trust

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

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-4FL at AAA (sf)
-- Class A-4FX at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class 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 pool’s performance since issuance in June 2012. As of the March 2015 remittance, the pool consists of 48 loans out of the original loan count of 49 as the former largest loan in the transaction was prepaid in full in July 2014. Since issuance, the transaction has experienced a total collateral reduction of 15.8%. According to the most recent reported year-end financials, the transaction had a weighted-average (WA) debt service coverage ratio (DSCR) and the WA debt yield of 1.60 times (x) and 11.6%, respectively.

As of the March 2015 remittance, there are four loans on the servicer’s watchlist, representing 6.5% of the current pool balance. Two of the loans on the servicer’s watchlist were flagged for deferred maintenance items; however, the issues identified by the servicer are not expected to negatively affect property performance. The largest loan on the servicer’s watchlist is highlighted below.

The DoubleTree by Hilton JFK Airport loan (Prospectus ID#12; 3.0% of the current pool) is secured by a full service hotel in the Jamaica region of Queens, New York. The loan was added to the servicer’s watchlist after the DSCR declined to 0.43x at YE2014 from 1.30x at YE2013. The loan was formerly in special servicing after the former franchisor, Hilton Worldwide, terminated the franchise agreement. The loan returned to the master servicer in November 2013 and the property has since operated under the Radisson Hotels flag. The decline in performance throughout 2014 appears to be a result of declining occupancy rates and revenue per available room (RevPAR). According to the January 2015 Smith Travel Research (STR) report, the subject reported trailing 12 months (TTM) occupancy, ADR and RevPAR of 74%, $136 and $101, respectively, compared with TTM occupancy, ADR and RevPAR of 83%, $144 and $118, respectively, according to January 2014 STR report. The subject trails the competitive set in terms of occupancy, ADR and RevPAR which, as of January 2015, were reported at 83%, $158 and $131, respectively. Additional room supply in the submarket may be one cause for the decreasing occupancy rate as a new Crowne Plaza Hotel, located directly adjacent to the subject, opened in 2014. Including the Crowne Plaza Hotel, there are seven nearby hotels which are all newer than the subject property. According to the February 2015 servicer site inspection, public restrooms and the lobby are scheduled to undergo renovations, which may allow the subject to better compete with newer hotels in the area.

The DBRS analysis took into account the largest 15 loans and the loans on the servicer’s watchlist. Combined, these loans account for 67.7% of the current outstanding pool balance.

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 March 2015 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 related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

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

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance Methodology (January 2015), which can be found on our website under Methodologies