Market Overview

Fitch Upgrades 4 Classes of JPMCC 2004-C1

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NEW YORK--(BUSINESS WIRE)--

Fitch Ratings has upgraded four classes and affirmed five classes of J.P. Morgan Chase Commercial Mortgage Securities Corp. 2004-C1 (JPMCC 2004-C1) commercial mortgage pass-through certificates. 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 a significant amount of defeasance in the remaining pool.

There are 17 loans remaining in the pool, three of which are defeased (45.1%). Fitch has designated seven (29.2%) Fitch Loans of Concern, which includes four specially serviced assets (21%). Fitch modeled losses of 13.9% of the remaining pool; expected losses on the original pool balance total 1.9%, including $11 million (1.1% of the original pool balance) in realized losses to date.

As of the February 2015 distribution date, the pool's aggregate principal balance has been reduced by 94.2% to $60.4 million from $1.04 billion at issuance. Interest shortfalls are currently affecting classes P through NR.

The largest contributor to expected losses is the Tower Marketplace Center (6.9% of the pool), a 127,876 sf retail shopping center located in Raleigh, NC. The loan transferred to special servicing in Oct. 2013 due to monetary default after the anchor tenant vacated. The property became real estate owned (REO) in June 2014. The special servicer reports the property suffers from poor leasing prospects and continues to lease up the property. The special servicer also reports the property was 44% occupied as of year-end 2014.

The next largest contributor to expected losses is the Eckerd's - Audubon loan (4.8%), which was originally secured by 10,908 sf single tenant retail property located in Audubon, NJ. The loan transferred to special servicing upon maturity in January 2014. Eckerd, the single credit tenant, vacated the property around 2007 after it was acquired by Rite Aid. Rite Aid assumed the lease and remains obligated to pay rent until November 2023. The special servicer reports that the space was subleased to AT&T in April 2014 and runs until the end of the master lease. Additionally, the special servicer states the borrower is trying to payoff the loan.

The third largest contributor to expected losses is the Square Lake Park Office Building (6.3%), a 40,563 square foot (sf) office complex located in Bloomfield Hills, MI. The loan transferred to special servicing in November 2013 due to maturity default. As per the special servicer, the property was foreclosed upon in March 2014. As per the special servicer, the property was 100% occupied as of year-end 2014, after the largest tenant (50.7% of the net rentable area) renewed their lease for another 5 years in July 2014, which increased the property's current value.

RATING SENSITIVITIES

Rating Outlooks on classes F through L are Stable due to increasing credit enhancement and continued paydown. The ratings for class J and K were capped at 'A' due the classes vulnerability to interest shortfalls. Fitch will not assign or maintain 'AAAsf' or 'AAsf' ratings for notes that it believes have a high level of vulnerability to interest shortfalls or deferrals, even if permitted under the terms of the documents (see 'Criteria for Rating Caps and Limitations in Global Structured Finance Transactions', dated May 28, 2014, for more details).

Fitch upgrades the following classes and assigns Rating Outlooks as indicated:

--$10.4 million class H to 'AAAsf' from 'Asf'; Outlook Stable;

--$6.5 million class J to 'Asf' from 'BBsf'; Outlook Stable;

--$5.2 million class K to 'Asf' from 'Bsf'; Outlook Stable;

--$3.9 million class L to 'Bsf' from 'CCCsf'; Outlook Stable Assigned.

Fitch affirms the following classes and assigns REs as indicated:

--$8.6 million class F at 'AAAsf'; Outlook Stable;

--$9.1 million class G at 'AAAsf'; Outlook Stable;

--$5.2 million class M at 'CCCsf'; RE 100%;

--$2.6 million class N at 'CCsf'; RE 100%;

--$2.6 million class P at 'Csf'; RE 50%.

The class A-1, A-2, A-3, A-1A, B, C, D, E and 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 on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 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' (Aug. 4, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014);

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

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=980375

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
Sean Gibbs, +1-212-908-0311
Associate Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

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