Fitch Ratings has affirmed all classes of
RATING ACTIONS
ENTITY/DEBT RATING PRIOR
JPMCC 2012-
A 46637YAA7
LT AAAsf Affirmed AAAsf
B 46637YAG4
LT AAAsf Affirmed AAAsf
C 46637YAJ8
LT AAsf Affirmed AAsf
D 46637YAL3
LT Asf Affirmed Asf
E 46637YAN9
LT Asf Affirmed Asf
X-A 46637YAC3
LT AAAsf Affirmed AAAsf
X-B 46637YAE9
LT AAsf Affirmed AAsf
VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Relatively Stable to Improved NCF/Low Trust Leverage: Although the Fitch stressed net cash flow (NCF) is 3.4% below Fitch's last review due to increased real estate taxes and repairs and maintenance expenses and slight decline in occupancy, it has improved 12% since issuance largely due to the largest tenant,
Fitch Ratings' stressed debt service coverage ratio (DSCR) for the trust component of the debt is 1.87x, and the stressed loan to value (LTV) is 47.4%. The Fitch Ratings' stressed debt service coverage ratio for the total debt is 1.28x and the stressed loan to value (LTV) is 69.5%. The affirmations reflect stable performance since Fitch's last rating action.
Historical Strong Occupancy: The property continues to exhibit strong occupancy since issuance despite the slight decline to 96.4% as of
Coronavirus Impact: The loan has a minimal concentration of retail tenants including
Asset Quality/Location: The property is a class A, 30-story tower with expansive views of
Single Asset: The transaction is secured by a single property and is, therefore, more susceptible to single event risk related to the market, sponsor or the largest tenants occupying the property.
RATING SENSITIVITIES
The Rating Outlook for all classes remains Stable. No rating actions are anticipated unless there are material changes in property occupancy or cash flow. The property performance is consistent with issuance.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade to classes C, D, E and X-B may occur with significant improved performance of the underlying asset and continued amortization.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
A significant decline in asset occupancy;
A significant deterioration in property cash flow.
For more information on Fitch's original rating sensitivity on the transaction, please refer to the new issuance report.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
No third-party due diligence was provided or reviewed in relation to this rating action.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG CONSIDERATIONS
The highest level of ESG credit relevance, if present, is a score of 3. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity(ies), either due to their nature or to the way in which they are being managed by the entity(ies). For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.
Additional information is available on www.fitchratings.com
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