Moody's Upgrades Eight Classes of J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2003-CIBC7
Approximately $1.4 Billion of Structured Securities Affected
New York, July 23, 2007 -- Moody's Investors Service upgraded the ratings of eight classes and affirmed
the ratings of 16 classes of J.P. Morgan Chase Commercial
Mortgage Securities Corp., Commercial Mortgage Pass-Through
Certificates, Series 2003-CIBC7 as follows:
-Class A-1, $8,813,241, affirmed
at Aaa
-Class A-1A, $358,951,520,
affirmed at Aaa
-Class A-2, $150,000,000,
affirmed at Aaa
-Class A-3, $191,758,000,
affirmed at Aaa
-Class A-4, $390,000,000,
affirmed at Aaa
-Class X-1, Notional, affirmed at Aaa
-Class X-2, Notional, affirmed at Aaa
-Class B, $34,689,000, upgraded
to Aaa from Aa2
-Class C, $13,875,000, upgraded
to Aaa from Aa3
-Class D, $27,751,000, upgraded
to Aa3 from A2
-Class E, $15,610,000, upgraded
to A2 from A3
-Class F, $17,345,000, affirmed
at Baa1
-Class G, $10,407,000, affirmed
at Baa2
-Class H, $19,078,000, affirmed
at Baa3
-Class J, $5,204,000, affirmed at
Ba1
-Class K, $5,203,000, affirmed at
Ba2
-Class L, $8,672,000, affirmed at
Ba3
-Class M, $8,673,000, affirmed at
B1
-Class N, $3,469,000, affirmed at
B2
-Class P, $3,468,000, affirmed at
B3
-Class FS-1, $13,082,802,
upgraded to Aa1 from Aa2
-Class FS-2, $12,985,169,
upgraded to Aa2 from Aa3
-Class FS-3, $12,887,536,
upgraded to Aa3 from A1
-Class FS-4, $44,032,416,
upgraded to A2 from A3
As of the July 12, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 6.7%
to $1.37 billion from $1.47 billion at securitization.
The Certificates are collateralized by 179 mortgage loans ranging in size
from less than 1.0% to 11.7% of the pool,
with the top 10 loans representing 36.4% of the pool.
The pool includes three shadow rated loans, representing 19.0%
of the pool. Fifteen loans, representing 15.5%
of the pool, have defeased and are secured by U.S.
Government securities.
One loan has been liquidated from the pool resulting in a realized loss
of approximately $2.4 million. Two loans, representing
1.3% of the pool, are currently in special servicing.
Moody's estimates an aggregate loss of approximately $5.8
million for these specially serviced loans. Twenty-five
loans, representing 29.3% of the pool, are on
the master servicer's watchlist.
Moody's was provided with year-end 2006 operating results for 91.1%
of the performing loans. Moody's loan to value ratio ("LTV") for
the conduit component is 83.1%, compared to 88.4%
at Moody's last full review in August 2005 and compared to 87.6%
at securitization. Moody's is upgrading Classes B,
C, D and E due to increased subordination levels, defeasance
and overall improved pool performance. Moody's is upgrading
Classes FS-1, FS-2, FS-3 and FS-4
due to the improved performance of the Forum Shops Loan, discussed
below.
The largest shadow rated loan is the Forum Shops Loan ($151.3
million -- 11.7%), which represents a participation
interest in a $454.6 million first mortgage loan secured
by a 637,000 square foot retail center located in Las Vegas,
Nevada. The property is also encumbered by an $83.1
million B Note which secures non-pooled Classes FS-1,
FS-2, FS-3 and FS-4. The center was
98.2% occupied as of March 2007, compared to 97.0%
at last review. Comparable sales for tenants less than 10,000
square feet were $1,500 per square foot for calendar year
2006, compared to $1,234 per square foot for calendar
year 2005. Financial performance has improved due to increased
rental income and loan amortization. Moody's current shadow ratings
for the participation interest and B Note are Aaa and A2, respectively,
compared to Aa1 and A3 at Moody's last review of this loan in December
2006.
The second shadow rated loan is the One Post Office Square Loan ($58.7
million -- 4.5%), which represents a participation
interest in a $117.5 million first mortgage loan secured
by a 766,000 square foot Class A office building located in Boston,
Massachusetts. The property was 99.9% occupied as
of June 2006, compared to 80.0% at last review.
Moody's current shadow rating is Aa3, the same as at last review.
The third shadow rated loan is the Brown Noltemeyer Portfolio Loan ($35.5
million -- 2.8%), which consists of five cross
collateralized and cross defaulted loans secured by eight multifamily
properties. The properties total 2,087 units and are all
located in Louisville, Kentucky. The loan is structured with
a 17-year amortization schedule and has amortized by approximately
13.9% since securitization. Moody's current shadow
rating is Aa2, compared to Aa3 at last review.
The top three non-defeased conduit loans represent 11.7%
of the outstanding pool balance. The largest conduit loan is the
Hometown America Portfolio III Loan ($61.7 million --
4.8%), which is secured by five manufactured housing
communities. The properties are located in four states and contain
a total of 1,953 pads. The portfolio was 85.3%
occupied as of March 2007, compared to 91.1% at last
review and compared to 95.5% at securitization. Moody's
LTV is 94.3%, compared to 90.2% at last
review.
The second largest conduit loan is the Potomac Run Loan ($44.8
million -- 3.5%), which is secured by a 362,000
square foot community shopping center located in Sterling (Loudoun County),
Virginia. The center was 100.0% occupied as of December
2006, compared to 98.9% at securitization.
Moody's LTV is 92.6%, compared to 96.5%
at last review.
The third largest conduit loan is the Colony Cove Loan ($44.4
million -- 3.4%), which is secured by a 2,210-pad
mobile home park located approximately 40 miles south of Tampa in Ellenton,
Florida. The property was 95.9% occupied as of March
2007, compared to 98.0% at last review. The
loan was structured with a 20-year amortization schedule,
and has amortized by approximately 10.9% since securitization.
Moody's LTV is 63.4%, compared to 70.7%
at last review.
New York
Pamela Dent
Senior Vice President
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Sandra Ruffin
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653