Fitch Upgrades JPM 2002-CIBC4

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has upgraded one and affirmed 14 classes of J.P. Morgan Chase Commercial Mortgage Securities Corp., commercial mortgage pass-through certificates, series 2002-CIBC4. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrade is primarily due to an increase in credit enhancement as a result of continued amortization of the remaining pool and an increase in defeasance (to 13.7% from 11.8%) since Fitch's last rating action. The upgrade is limited to 'BB' due to high concentration of the remaining pool and a greater potential for adverse selection as performing loans refinance. Currently, there are only 14 loans remaining in pool, all of which are fully amortizing. Three loans are defeased, and two have become real estate owned assets (REO) (12.7%). Of the 12 performing loans, two (1.7%) mature in 2016, three (24.6%) in 2017, one (3%) in 2020, one (11.4%) in 2021, and five (46.6%) in 2022.

Fitch modeled losses of 11.9% of the remaining pool, mainly from the specially serviced loans; expected losses on the original pool balance total 12.7%, including 12.3% in realized losses to date. As of the May 2015 distribution date, the pool's aggregate principal balance has been reduced by 96.4% to $28.7 million from $798.9 million at issuance. Interest shortfalls totaling $8 million are currently affecting classes D through NR.

The first specially serviced asset (6.4%)is a 50,964 square foot (sf) retail property in Macon, GA. the property became real estate owned (REO) in October 2014. As of February 2015, the property was 33.5% occupied. The special servicer is pursuing legal proceedings against the borrower to recover withholding rents and security deposits. Asset will be included in the June general auction.

The second specially serviced asset (6.3%) is a 19,545-sf retail property in Edwards, CO. The property became REO in October 2013. The special servicer is working to lease up the property before marketing it for sale. As of March 2015, the property was 86.8% occupied, compared to 75.5% a year ago.

RATING SENSITIVITIES

The rating for class C is expected to be stable. Future downgrades to D are possible as losses are realized.

Fitch upgraded the following class:

--$17 million class C to 'BBsf' from 'Bsf', Outlook Stable.

Fitch affirmed the following classes:

--$10 million class D at 'Csf', RE 80%.

--$2 million class E at 'Dsf', RE 0%;

--$0 class F at 'Dsf', RE 0%;

--$0 class G at 'Dsf', RE 0%;

--$0 class H at 'Dsf', RE 0%;

--$0 class J at 'Dsf', RE 0%;

--$0 class K at 'Dsf', RE 0%;

--$0 class L at 'Dsf', RE 0%;

--$0 class M at 'Dsf', RE 0%.

The class A-1, A-2, A-3, B and the interest-only class 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=984624

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 St.
New York, NY 10004
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
[email protected]

Source: Fitch Ratings

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