NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) affirmed all of its outstanding ratings for 14 classes of certificates in JPMCC 2012-C8, a $1.1 billion CMBS multi-borrower transaction. The conduit transaction is collateralized by 43 fixed-rate commercial mortgage loans that are secured by 83 properties. For individual certificate ratings, please see the list below.
The transaction has exhibited stable performance since issuance. The WA KLTV (95.2%) and WA KDSC (1.57x) have remained relatively flat since issuance when they were 96.2% and 1.57x, respectively. The top 10 loans, which comprise 57.9% of the pool, have generally posted stable performance since securitization and all were assigned a KBRA Performance Outlook (KPO) of Perform. In September 2013, a permitted property release occurred in the National Industrial Portfolio, which reduced the loan’s balance by $17.9 million, or 115% of the allocated loan amount of the released property. Post release, National Industrial Portfolio is the fourth largest loan comprising 6.5% of the pool balance. As of the September 2013 pay-date, there are no delinquent or specially serviced loans. During our review of the transaction, we did not identify any KBRA Loans of Concern (“K-LOCs”). K-LOCs are loans that are either in default or at heightened risk of default in the near term. The review included an examination of the CREFC Investor Reporting Package files and other information provided by the master servicer.
The review utilized property financial information obtained from the master servicer, KeyBank National Association (KeyBank), who recently merged with KeyCorp Real Estate Capital Markets, Inc. (KRECM). KeyBank provided updated financial information for 100% of the pool. Of this information, June 2013 data was available for 20 loans (55.9% of the pool balance). The remaining information was comprised of March 2013 data (20 loans, 37.2%) and December 2012 data (three loans, 6.9%). KBRA generally utilized 12 months of financial information to determine KNCF. In certain instances, KBRA annualized financial information for loans with partial year financial data. Once KNCF was determined, we conducted our credit modeling using the KBRA Multi-Borrower Model. The modeling produced credit enhancement levels that were compared to the transaction's capital structure, which resulted in the affirmation of all of the transaction's outstanding ratings. For complete details on our analysis, please refer to the surveillance report, as well as links to the publications below.
|Class||Rating||Current Balance (000’s)||Rating Action|
(1) Notional Class
Related Publications (available at https://www.krollbondratings.com):
CMBS Presale Report: JPMCC 2012-C8
KeyCorp Rating Report
U.S. CMBS Multi-Borrower Rating Methodology, published February 23, 2012
CMBS Property Evaluation Guidelines, published June 10, 2011