Fitch Affirms J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-HSBC

  Fitch Affirms J.P. Morgan Chase Commercial Mortgage Securities Trust
  2012-HSBC

Business Wire

NEW YORK -- July 10, 2014

Fitch Ratings has affirmed all rated classes of J.P. Morgan Chase Commercial
Mortgage Securities Trust 2012-HSBC (JPMCC 2012-HSBC). A detailed list of
rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmation of JPMCC 2012-HSBC is based on the stable performance of the
underlying trust asset. As of the July 2014 remittance, physical occupancy has
stabilized as expected at issuance. The loan is interest-only for the first 60
months.

RATINGS SENSITIVITY

The Rating Outlook for all classes remains Stable. No rating actions are
expected unless there are material changes to the property occupancy and cash
flow. Additional information on rating sensitivity is available in the report
'JPMCC Mortgage Securities Trust 2012-HSBC' (Aug. 31, 2012), available at
www.fitchratings.com.

HSBC Tower is a 30-story, 865,339 square foot (sf), high-rise office building
located in the Grand Central/Bryant Park submarket in midtown Manhattan. The
three largest tenants are HSBC (60%), Baker & McKenzie (12%),and Man
Investments Holding Inc (6%), with lease expirations in 2020, 2028, and 2022;
respectively. At issuance, the property was 92% leased, with some tenants
awaiting the build out of their units; all tenants are currently in place. As
of the March 2014 rent roll, the property is 95.9% occupied with average rents
at $56 sf. Per REIS as of 1st quarter (1Q) 2014, the Grand Central submarket
office vacancy is 7.1% with average asking rent $73 sf.

The loan is structured with a hard lockbox and both ongoing and upfront
reserves. Reserves account for current and future expenses for leasing costs
and capital expenditures, as well as upfront reserves to cover ongoing capital
improvements and free rent. A rollover reserve of $1.25 million per annum is
in place for HSBC as is a cash flow sweep that will be triggered 30 months
prior to HSBC's lease expiration.

Fitch affirms the following classes as indicated:

--$200,000,000 class A at 'AAAsf'; Outlook Stable;

--Interest-only class X-A* at 'AAAsf'; Outlook Stable;

--Interest-only class X-B** at 'BBB-sf'; Outlook Stable;

--$15,000,000 class B at 'AAsf'; Outlook Stable;

--$21,400,000 class C at 'Asf'; Outlook Stable;

--$58,600,000 class D at 'BBB-sf'; Outlook Stable;

--$5,000,000 class E at 'BBB-sf'; Outlook Stable.

* notional balance of class A.
** notional balance of classes B, C, D and E.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2014);

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage
Transactions' (Sep. 20 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=718468

Additional Disclosure

Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=838991

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.

Contact:

Fitch Ratings
Primary Analyst
Lisa Cook, +1-212-908-0665
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com
 
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