News Column

Fitch Upgrades 4 Classes of JPMCC 2004-CIBC9

July 9, 2014

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has upgraded four classes and affirmed nine classes of J.P. Morgan Chase Commercial Mortgage Securities Corp.'s commercial mortgage pass-through certificates 2004-CIBC9. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades reflect the increased credit enhancement levels after significant paydown since Fitch's last rating action. Of the original 117 loans, only twelve remain. Fitch has designated three of the remaining loans (27.0%) as Fitch Loans of Concern, which includes one specially serviced asset (14.8%). Fitch modeled losses of 1.2% of the remaining pool; expected losses on the original pool balance total 6.5%, including $71 million (6.4% of the original pool balance) in realized losses to date.

As of the June 2014 distribution date, the pool's aggregate principal balance has been reduced by 93.2% to $75.2 million from $1.1 billion at issuance. The servicer has confirmed that three additional loans have been paid off since the distribution date. Taking into account these payoffs, the pool's aggregate balance will have been reduced by 94.8% at the next distribution. The Interest shortfalls are currently affecting classes D through NR.

The specially-serviced loan (14.84% of the pool) is the largest loan in the pool and is secured by a 50 unit multi-family property with ground floor retail space located in Brooklyn, NY. Retail tenants include Rite-Aid and Brooklyn Vet Emergency Services. The loan transferred to special servicing in April 2013 due to the bankruptcy filing of the borrower. The special servicer is pursuing all rights and remedies and continues to work through the borrower's bankruptcy. A resolution is still being determined. Occupancy at the property remains near 100% as reported by the June 2014 rent roll.

RATING SENSITIVITY

Rating Outlooks on classes B through D remain Stable. These senior classes will continue to benefit from paydown as the remaining loans amortize. No downgrades are expected unless there is a significant deterioration in the performance of any of the remaining loans.

Fitch upgrades the following classes and assigns or revises Rating Outlooks and REs as indicated:

--$21.5 million class B to 'AAAsf' from 'BBB-sf'; Outlook Stable;

--$13.8 million class C to 'Asf' from 'BBsf'; Outlook Stable;

--$20.7 million class D to 'BBsf' from 'CCCsf'; Outlook Stable;

--$11 million class E to 'CCCsf' from 'Csf'; RE 100%.

Fitch affirms the following classes as indicated:

---$8.3 million class F at 'Dsf'; RE 95%;

--$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%;

--$0 class N at 'Dsf'; RE 0%;

--$0 class P at 'Dsf'; RE 0%.

The class A-1, A-2, A-3, A-4 and A1-A certificates have paid in full. Fitch does not rate the class NR certificates. Fitch previously withdrew the rating on the interest-only class X certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=838796

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

Daniel Anderson

Associate Director

+1-312-368-2305

Fitch Ratings, Inc.

70 West Madison

Chicago, IL 60602

or

Committee Chairperson

Mary MacNeill

Managing Director

+1-212-908-0785

or

Media Relations

Sandro Scenga, +1-212-908-0278

sandro.scenga@fitchratings.com


Source: Fitch Ratings


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