Fitch Upgrades Two Class of JPMC 2002-CIBC5; Revises Rating Outlooks

Fitch Ratings has upgraded two and affirmed four classes of JP Morgan Chase Commercial Mortgage Securities Corporation (JPMC) commercial mortgage pass-through certificates, series 2002-CIBC5. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades are the result of increasing credit enhancement from continued paydown, stable performance of the underlying collateral and high percentage of loans structured with full amortization (75.9%). While the credit enhancement of classes J, K and L are high, Fitch capped the ratings based on the concentrated nature of the pool with only 11 loans left and significant exposure to single tenant properties (five loans representing 37% of the pool), which carry binary risk that may grow as pool concentration increases.

As of the April 2015 distribution date, the pool's aggregate principal balance has been reduced by 96.1% to $39.2 million, from $1,004.3 million at issuance. Interest shortfalls are currently affecting classes M and NR.

Of the original 118 loans, there are 11 loans remaining in the pool, three of which (38.4%) are defeased. Currently there are no specially serviced or delinquent loans. Fitch has designated four loans (26%) as Fitch Loans of Concern.

The largest Fitch loan of concern (LOC) (16%) is secured by a 118,298 sf retail property in Bedford, TX. It is anchored by Tom Thumb Grocery, which occupies 41% of the property with lease expiring in August 2017. The loan matures in June 2017. Although occupancy has remained stable since issuance, property performance has suffered for several years due to rent concessions. In the event that Tom Thumb Grocery does not renew its lease at expiration, the loan could face difficulty refinancing. As of third quarter (3Q) YE 2015, the property was 92.5% occupied, compared to 90% at issuance. The servicer-reported 3Q15 debt service coverage (DSCR) was 1.14, compared to 1.06x at YE14, 0.88x at YE13 and 1.34x at issuance.

The second largest Fitch LOC is secured by a 95,148 sf retail property located in Duncanville, TX. The property is anchored by Tom Thumb Grocery, which occupies 55% of the property with lease expiring January 2017. The loan matures in July 2017. The property occupancy has remained stable since issuance. Should the anchor tenant fail to renew its lease, the loan could have trouble refinancing at maturity. As of YE 2015, the property was 90.1% occupied, compared to 85% at issuance. The servicer-reported YE 2015 DSCR was 1.49X, compared to 1.35x at issuance.

RATING SENSITIVITIES

Further upgrades are unlikely as the potential for future performance volatility of the concentrated pool and exposure to single tenant properties warrants a cap on ratings of the remaining classes. Downgrades to class L are possible if pool performance declines significantly.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has upgraded the following ratings and revised Outlooks as indicated:

--$12.6 million class J to 'Asf' from 'BBBsf'; Outlook Stable;

--$5 million class K to 'BBBsf' from 'BBsf'; Outlook to Stable from Negative.

Fitch has affirmed the following ratings and revised Outlooks as indicated:

--$11.3 million class H at 'AAAsf'; Outlook Stable;

--$5 million class L at 'Bsf'; Outlook to Stable from Negative;

--$5.4 million class M at 'Dsf'; RE 0%;

--$0 class N at 'Dsf'; RE 0%.

The classes A-1, A-2, B, C, D, E, F, G and the interest only X-2 certificates have paid in full. Fitch does not rate the class NR certificates. Fitch previously withdrew the rating on the interest-only class X-1 certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 28 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748781

Exposure Draft: Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 Apr 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=878412

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1003010

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1003010

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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