Fitch Affirms JPM 2006-CIBC17

Fitch Ratings has affirmed 19 classes of J.P. Morgan Chase Commercial Mortgage Securities Corp (JPMCC) commercial mortgage pass-through certificates series 2006-CIBC17. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are due to relatively stable performance of the remaining pool as well as no significant change in modeled losses. Fitch modeled losses of 18.5% of the remaining pool; expected losses on the original pool balance total 18.4%, including $42.6 million (1.7% of the original pool balance) in realized losses to date. Fitch has designated 50 Fitch Loans of Concern (43.9%), which includes 17 specially serviced assets (21.6%).

As of the December 2013 distribution date, the pool's aggregate principal balance has been reduced by 9.5% to $2.3 billion from $2.54 billion at issuance. No loans are defeased. Interest shortfalls are currently affecting classes D through NR.

The largest contributor to expected losses continues to be the specially-serviced Bank of America Plaza (11.5% of the pool), a 1.3 million square foot (sf), class A office property located in downtown Atlanta, GA. The largest tenants are Trautman Sanders, LLC (25%) and Bank of America (14%) with lease expirations in 2022. The loan was transferred to special servicing in February 2011 and is currently real estate owned (REO). The property has suffered declining occupancy since 2011 resulting from tenant's vacating and downsizing space, in addition to challenging market conditions. The property was 51% occupied as of November 2013. The special servicer is currently working on stabilizing the asset by launching a new website and marketing campaign in addition to several planned improvements, which once completed should increase leasing momentum at the property. Per REIS, as of 3rd quarter (3Q) 2013, the Atlanta office market vacancy is 20.3% with asking rents $21.64 sf.

The next largest contributor to expected losses is the Westfield Shoppingtown Independence loan (4.8%), which is secured by a 1,014,971 sf (493,432 sf of collateral) regional mall located in Wilmington, NC. The non-owned anchors include Sears, Belk, and Dillard's. The largest tenants include JC Penney 22.7% lease expiration Aug. 31, 2016, Life Community Church (2.9%), expiration June 30, 2014, College of Wilmington & Day Spa (2.8%) expiration April 30, 2020. The fiscal year end June 30, 2013 debt service coverage ratio (DSCR) is 0.80x with mall occupancy at 95.22%( occupancy representing the collateral is 88% as of June 30, 2013). Per the master servicer, 31% of the leases roll within the next six months, of which 16% has renewed, 11% has or will be vacating, and the intentions of the remaining 5% are unknown. Although occupancy has remained stable, income continues to decline year over year due to lower base rents for new and renewing tenants. Per REIS as of 3Q'13, the Wilmington Metro Retail market vacancy is 15.9% with asking rents $15.77.

The third largest contributor to expected losses is the specially-serviced City View Portfolio (2.5%), seven multifamily properties consisting of 2,226 units located in the Greenspoint section of Houston, TX. The loan was transferred to special servicing in February 2010 due to imminent default and is currently REO. The decline in portfolio performance is due to a significant fire at one of the properties, in addition to an increase in expenses at another property with significant crime issues. As of December 2013, the portfolio is 88% occupied; 94% excluding the down units.

RATING SENSITIVITY

Rating Outlooks on classes A-3 through A-1A remain Stable due to increasing credit enhancement and continued paydown. The rating outlook on class A-M remains Negative due to declines in performance of some of the larger loans of concern.

Fitch affirms the following classes and assigns or revises REs as indicated:

--$203 million class A-J at 'CCsf', RE 25%.

Fitch affirms the following classes as indicated:

--$30.6 million class A-3 at 'AAAsf'; Outlook Stable;

--$1.2 billion class A-4 at 'AAAsf'; Outlook Stable;

--$50.3 million class A-SB at 'AAAsf'; Outlook Stable;

--$274.8 million class A-1A at 'AAAsf'; Outlook Stable;

--$253.7 million class A-M at 'BBsf'; Outlook Negative;

--$44.4 million class B at 'Csf', RE 0%;

--$19 million class C at 'Csf', RE 0%;

--$34.9 million class D at 'Csf', RE 0%;

--$31.7 million class E at 'Csf', RE 0%;

--$34.9 million class F at 'Csf', RE 0%;

--$31.7 million class G at 'Csf', RE 0%;

--$31.7 million class H at 'Csf', RE 0%;

--$9.5 million class J at 'Csf', RE 0%;

--$9.5 million class K at 'Csf', RE 0%;

--$9.5 million class L at 'Csf', RE 0%;

--$3.2 million class M at 'Csf', RE 0%;

--$1.6 million class N at 'Dsf', RE 0%;

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

The class A-1 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. 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 24, 2013);

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

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

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=814037

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
Lisa Cook, [phone]
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, [phone]
Managing Director
or
Media Relations, New York
Sandro Scenga, [phone]
[e-mail]