July 25, 2012 / 2:07 PM / 5 years ago

TEXT-S&P rates JPMorgan Commercial Mortgage 2012-HSBC

 (The following statement was released by the rating agency)
OVERVIEW
  -- J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-HSBC is a 
CMBS transaction backed by a $300 million commercial mortgage loan secured by 
one high-rise office building in Midtown Manhattan. HSBC Tower totals 864,303 
sq. ft. and is located at 452 Fifth Ave. 
  -- We assigned our ratings to the class A, X-A, B, and C certificates.
  -- The ratings reflect our view of the transaction's structure, the 
collateral's historical and projected performance, and the sponsor's and 
manager's experience, among other factors.
 
NEW YORK (Standard & Poor's) July 25, 2012--Standard & Poor's Ratings Services 
today assigned its ratings to J.P. Morgan Chase Commercial Mortgage Securities 
Trust 2012-HSBC's $300 million commercial mortgage pass-through certificates 
(see list).

The issuance is a commercial mortgage-backed securities transaction backed by 
a $300 million commercial mortgage loan secured by one high-rise office 
building in Midtown Manhattan. HSBC Tower totals 864,303 sq. ft. and is 
located at 452 Fifth Ave. 

The ratings reflect our view of the collateral's historical and projected 
performance, the sponsor's and manager's experience, the trustee-provided 
liquidity, the loan's terms, and the transaction's structure. Standard & 
Poor's determined that the loan has a beginning loan-to-value (LTV) ratio of 
80.6% and an ending LTV of 73.5% based on Standard & Poor's value.
 
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
 
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating 
relating to an asset-backed security as defined in the Rule, to include a 
description of the representations, warranties and enforcement mechanisms 
available to investors and a description of how they differ from the 
representations, warranties and enforcement mechanisms in issuances of similar 
securities.

The Standard & Poor's 17g-7 Disclosure Report included in this credit rating 
report is available here.

RELATED CRITERIA AND RESEARCH
  -- Presale: J.P. Morgan Chase Commercial Mortgage Securities Trust 
2012-HSBC, July 10, 2012
  -- Request For Comment: Rating Methodology And Assumptions for U.S. And 
Canadian CMBS, June 4, 2012
  -- Request For Comment: CMBS Global Property Evaluation Methodology, June 
4, 2012
  -- Application Of CMBS Global Property Evaluation Methodology in U.S. And 
Canadian Transactions, June 4, 2012
  -- Global Investment Criteria For Temporary Investments In Transaction 
Accounts, May 31, 2012
  -- Counterparty Risk Framework Methodology and Assumptions, May 31, 2012
  -- Methodology And Assumptions: Assigning Ratings To Bonds In The U.S. 
Based On Escrowed Collateral, May 31, 2012
  -- Methodology and Assumptions For Rating U.S. And Canadian Stand-Alone 
and Large Loan CMBS Transactions, March 8, 2012 
  -- Global Structured Finance Scenario And Sensitivity Analysis: The 
Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011
  -- U.S. Government Support in Structured Finance and Public Finance 
Ratings, Sept. 19, 2011
  -- Principles Of Credit Ratings, Feb. 16, 2011
  -- Methodology And Assumptions For Analyzing The Major Property Types In 
U.S. CMBS Transactions, June 14, 2010
  -- Methodology And Assumptions: Capitalization Rates For Major Property 
Types In U.S. CMBS Transactions, June 14, 2010
  -- Global Methodology For Rating Interest-Only Securities, April 15, 2010 
  -- The Rating Process For CMBS Transactions, Sept. 1, 2004
  -- CMBS Property Evaluation Criteria: Commercial Property Cash Flow 
Analysis, Sept. 1, 2004
  -- CMBS Property Evaluation Criteria: Insurance Criteria For CMBS 
Transactions, Sept. 1, 2004
  -- U.S. CMBS Legal And Structured Finance Criteria: Property-Specific And 
Large Loan Transactions, May 1, 2003
  -- U.S. CMBS Legal And Structured Finance Criteria: Special-Purpose 
Bankruptcy-Remote Entities, May 1, 2003
  -- U.S. CMBS Legal And Structured Finance Criteria: Legal Opinions, May 
1, 2003
  -- U.S. CMBS Legal And Structured Finance Criteria: Appendix I: Insurance 
Criteria For U.S. CMBS Transactions, May 1, 2003
  -- U.S. CMBS Legal And Structured Finance Criteria: Appendix III: Revised 
Article 9 Of The Uniform Commercial Code: New Standard & Poor's Criteria, May 
1, 2003
  -- U.S. CMBS Legal And Structured Finance Criteria: Appendix VI: 
Intercreditor Agreement, May 1, 2003
  -- U.S. CMBS Legal And Structured Finance Criteria: Appendix XIII: 
Revised Legal Criteria For Multi- And Single-Member LLCs, May 1, 2003
  -- U.S. CMBS Legal And Structured Finance Criteria: Appendix XV: Typical 
Factors Considered By Courts In Determining Existence Of A True Sale, May 1, 
2003
  -- U.S. CMBS Legal And Structured Finance Criteria: Appendix XVI: Select 
Specific Opinion Criteria/Language, May 1, 2003
  -- Standard & Poor's Defeasance Criteria For U.S. CMBS Transactions, 
April 4, 2003
 
RATINGS ASSIGNED
J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-HSBC
 
Class       Rating             Amount ($)
A           AAA (sf)          200,000,000
X-A         AAA (sf)       200,000,000(i)
X-B         NR             100,000,000(i)
B           AA (sf)            15,000,000
C           A (sf)             21,400,000
D           NR                 58,600,000
E           NR                  5,000,000
R           NR                        N/A

(i)Notional balance. NR--Not rated. N/A--Not applicable.

 (New York Ratings Team)
 

Our Standards:The Thomson Reuters Trust Principles.
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