Fitch Affirms JPMCC 2012-C8
KEY RATING DRIVERS
The affirmations are due to stable pool performance. There have been no delinquent or specially serviced loans since issuance. Fitch reviewed the most recently available quarterly financial performance of the pool as well as updated rent rolls for the top 15 loans, which represent 69.6% of the transaction. Fitch has designated two (2.1%) Fitch Loans of Concern (FLOC) due to recent or upcoming tenant rollover.
As of the July 2015 distribution date, the pool's aggregate principal balance has been reduced by 5.1% to $1.1 billion.
The largest loan in the pool (11.6%) is secured by an 1.0 million square foot (sf) interest in a 1.2 million sf regional mall located in Springfield, MO. Anchors include: JC Penney, Dillard's, Dillard's Mens & Home, Macy's and Sears (non-collateral). As of year-end (YE) 2014, the servicer-reported collateral occupancy and debt service coverage ratio (DSCR) was 97.8% and 3.65x, respectively. Approximately 25.5% of NRA, including JC Penny, is scheduled to expire in 2016. Fitch will continue to monitor for leasing status updates as the anchor is required to provide notice to exercise its renewal option within 12 months of its lease expiration date (no later than Sept. 30, 2015).
The second largest loan in the pool (7.8%) is secured by a 280,299 sf office building located in Seattle, WA. The property is leased to multiple tenants under three primary General Services Administration (GSA) leases, which expire between 2019 and 2022. As of YE 2014, occupancy and DSCR were a reported 95.0% and 1.55x respectively.
RATING SENSITIVITIES
All classes maintain Stable Outlooks. Due to the relative recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following classes:
--$18.6 million class A-1 at 'AAAsf'; Outlook Stable;
--$189.2 million class A-2 at 'AAAsf'; Outlook Stable;
--$426.1 million class A-3 at 'AAAsf'; Outlook Stable;
--$103.6 million class A-SB at 'AAAsf'; Outlook Stable;
--$898 million class X-A* at 'AAAsf'; Outlook Stable;
--$102.3 million class A-S** at 'AAAsf'; Outlook Stable;
--$56.8 million class B** at 'AAsf'; Outlook Stable;
--$44 million class C** at 'Asf'; Outlook Stable;
--$203 million class EC** at 'Asf'; Outlook Stable.
--$35.5 million class D at 'BBB+sf'; Outlook Stable;
--$32.7 million class E at 'BBB-sf'; Outlook Stable;
--$15.6 million class F at 'BBsf'; Outlook Stable;
--$17 million class G at 'Bsf'; Outlook Stable.
*Notional amount and interest only.
**Class A-S, class B and class C certificates may be exchanged for class EC certificates, and class EC certificates may be exchanged for Class A-S, class B and class C certificates.
Fitch does not rate the $36,938,989 class NR certificates or the $238,681,989 interest only class X-B.
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