Approximately $32 Million of Structured Securities Affected
New York, August 04, 2017 -- Moody's Investors Service, ("Moody's") has
affirmed the ratings on three classes and upgraded the ratings on three
classes in J.P. Morgan Chase Commercial Mortgage Securities
Corp, Series 2003-CIBC6 as follows:
Cl. H, Upgraded to Aaa (sf); previously on Jan 20,
2017 Upgraded to A3 (sf)
Cl. J, Upgraded to A2 (sf); previously on Jan 20,
2017 Upgraded to Baa3 (sf)
Cl. K, Upgraded to Ba3 (sf); previously on Jan 20,
2017 Affirmed B2 (sf)
Cl. L, Affirmed Caa3 (sf); previously on Jan 20,
2017 Affirmed Caa3 (sf)
Cl. M, Affirmed C (sf); previously on Jan 20,
2017 Affirmed C (sf)
Cl. X-1, Affirmed Ca (sf); previously on Jun
9, 2017 Downgraded to Ca (sf)
RATINGS RATIONALE
The ratings on the P&I classes H, J, and K were upgraded
based primarily on an increase in credit support resulting from loan paydowns
and amortization. The deal has paid down 35% since Moody's
last review. In addition, due to a significant increase in
defeasance, to 61% of the current pool balance from 42%
at the last review.
The ratings on the P&I classes L & M were affirmed because the
ratings are consistent with Moody's expected loss plus realized
losses.
The rating on the IO class X-1 was affirmed based on the credit
quality of the referenced classes.
Moody's rating action reflects a base expected loss of 1.5%
of the current pooled balance, compared to 6.7% at
Moody's last review. Moody's base expected loss plus realized
losses is now 2.1% of the original pooled balance,
compared to 2.4% at the last review. Moody's
provides a current list of base expected losses for conduit and fusion
CMBS transactions on moodys.com at http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF215255.
FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS:
The performance expectations for a given variable indicate Moody's forward-looking
view of the likely range of performance over the medium term. Performance
that falls outside the given range can indicate that the collateral's
credit quality is stronger or weaker than Moody's had previously expected.
Factors that could lead to an upgrade of the ratings include a significant
amount of loan paydowns or amortization, an increase in the pool's
share of defeasance or an improvement in pool performance.
Factors that could lead to a downgrade of the ratings include a decline
in the performance of the pool, loan concentration, an increase
in realized and expected losses from specially serviced and troubled loans
or interest shortfalls.
METHODOLOGY UNDERLYING THE RATING ACTION
The principal methodology used in these ratings was "Moody's
Approach to Rating Large Loan and Single Asset/Single Borrower CMBS"
published in July 2017. Please see the Rating Methodologies page
on www.moodys.com for a copy of this methodology.
Additionally, the methodology used in rating Cl. X-1
was "Moody's Approach to Rating Structured Finance Interest-Only
(IO) Securities" published in June 2017. Please see the Rating
Methodologies page on www.moodys.com for a copy of this
methodology.
DEAL PERFORMANCE
As of the July 12, 2017 distribution date, the transaction's
aggregate certificate balance has decreased by 97% to $32
million from $1.04 billion at securitization. The
certificates are collateralized by 11 mortgage loans ranging in size from
less than 1% to 37% of the pool. Five loans,
constituting 61% of the pool, have defeased and are secured
by US government securities.
Moody's uses a variation of Herf to measure the diversity of loan
sizes, where a higher number represents greater diversity.
Loan concentration has an important bearing on potential rating volatility,
including the risk of multiple notch downgrades under adverse circumstances.
The credit neutral Herf score is 40. The pool has a Herf of three,
compared to six at Moody's last review.
Four loans, constituting 17% of the pool, are on the
master servicer's watchlist. The watchlist includes loans
that meet certain portfolio review guidelines established as part of the
CRE Finance Council (CREFC) monthly reporting package. As part
of Moody's ongoing monitoring of a transaction, the agency
reviews the watchlist to assess which loans have material issues that
could affect performance.
Eleven loans have been liquidated from the pool, resulting in an
aggregate realized loss of $21 million (for an average loss severity
of 42%). There are no loans currently in special servicing.
Moody's received full year 2016 operating results for 100% of the
pool, and full or partial year 2017 operating results for 100%
of the pool (excluding specially serviced and defeased loans).
Moody's weighted average conduit LTV is 85%, compared
to 80% at Moody's last review. Moody's conduit
component excludes loans with structured credit assessments, defeased
and CTL loans, and specially serviced and troubled loans.
Moody's actual and stressed conduit DSCRs are 2.08X and 1.75X,
respectively, compared to 1.56X and 1.84X at the last
review. Moody's actual DSCR is based on Moody's NCF
and the loan's actual debt service. Moody's stressed
DSCR is based on Moody's NCF and a 9.25% stress rate
the agency applied to the loan balance.
The top three conduit loans represent 34% of the pool balance.
The largest loan is the Old Orchard Village East Shopping Center Loan
($5.9 million -- 18% of the pool),
which is secured by a grocery-anchored shopping center located
in Louisville, TX. The property which was previously anchored
by a Hobby Lobby, is now anchored by a Winco Foods whose lease extends
through May 2040. The property was 85% occupied as of March
2017, the same as at Moody's last review. Moody's LTV and
stressed DSCR are 92% and 1.29X, respectively,
compared to 119% and 1.00X at the last review.
The second largest loan is the Essex Center Loan ($3.0 million
-- 9% of the pool), which is secured by a 54,000
SF office building located in Southfield, MI. The loan transferred
to special servicing in December 2011 and was modified during 2013,
returning to the master servicer in May 2014. As of March 2017,
the property was 95% leased. Moody's LTV and stressed DSCR
are 132% and 0.78X, respectively, compared to
173% and 0.59X at the last review.
The third largest loan is the 4 East 70th Street Loan ($2.0
million -- 6% of the pool), which is secured
by a 32-unit multifamily co-op property located between
Madison and Fifth Avenues on Manhattan's Upper East Side. Moody's
LTV and stressed DSCR are 31% and 2.94X, respectively,
the same as at Moody's last review.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and sensitivity
analysis, see the sections Methodology Assumptions and Sensitivity
to Assumptions of the disclosure form.
The analysis includes an assessment of collateral characteristics and
performance to determine the expected collateral loss or a range of expected
collateral losses or cash flows to the rated instruments. As a
second step, Moody's estimates expected collateral losses or cash
flows using a quantitative tool that takes into account credit enhancement,
loss allocation and other structural features, to derive the expected
loss for each rated instrument.
Moody's did not use any stress scenario simulations in its analysis.
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Fred Kasimov
Associate Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Keith Banhazl
Associate Managing Director
Structured Finance Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
