DBRS Upgrades Two Classes of JPMCC 2012-CIBX Mortgage Trust

DBRS, Inc. (DBRS) has today upgraded the ratings on the following classes of JPMCC 2012-CIBX Mortgage Trust:

-- Class C to AA (low) (sf) from A (high) (sf)
-- Class D to A (low) (sf) from BBB (high) (sf)

DBRS has also confirmed the remaining classes as follows:

-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-4FL at AAA (sf)
-- Class A-S at AAA (sf)
-- Class B at AA (high) (sf)
-- Class E at BBB (low) (sf)
-- Class F at BB (sf)
-- Class G at B (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)
-- Class A-4FX at AAA (sf)

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

The rating upgrades reflect the overall stable performance of the pool since issuance with 45 loans remaining of the original 53 loans. Since issuance, there has been a collateral reduction of 26.6%. The transaction also benefits from defeasance collateral as five loans, representing 12.4% of the pool, including four loans in the Top 15, are fully defeased. Performance metrics are healthy with a weighted-average (WA) in-place debt service coverage ratio (DSCR) of 1.59 times (x) and a WA debt yield of 11.6% based on the most recent year-end figures reported for the remaining loans in the pool. Those figures compare well with the DBRS WA Term DSCR and DBRS WA Debt Yield for the remaining loans at issuance of 1.40x and 10.1%, respectively, indicating healthy overall cash flow growth since issuance.

As of the February 2017 remittance, there are seven loans on the servicer’s watchlist, representing 9.6% of the pool balance, and one loan in special servicing, representing 0.7% of the pool. The watchlisted loans report a preceding-year WA DSCR of 1.62x and a WA debt yield of 13.0%. The loan in special servicing was transferred in September 2016 as a result of flood damage in August 2016 after heavy rains. The borrower completed repairs to remediate mold growth and was insured for flood damage; however, the borrower requested that the loan be transferred to the special servicer to access reserves. The loan is expected to be returned to the Master Servicer when payment for the flood damage is received.

There is one loan scheduled to mature in the next 12 months, representing 2.3% of the pool. The loan, One Upland Road (Prospectus ID#17), matures in January 2018 and has a strong DBRS refinance DSCR of 1.66x and an Exit Debt Yield of 13.0% based on the preceding net cash flow figure.

The ratings assigned to Classes E, F and G materially deviate from the higher ratings implied by the quantitative results. The deviations are warranted because sustainability of loan trends has not yet been demonstrated.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans, the specially serviced loan and the largest 15 loans in the pool in the DBRS CMBS IReports platform. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please log into DBRS CMBS IReports at www.ireports.dbrs.com.

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

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

The principal methodologies are North American CMBS Rating Methodology (January 2017) and CMBS North American Surveillance (December 2016), which can be found on dbrs.com under Methodologies.

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