OREANDA-NEWS. S&P Global Ratings today raised its ratings on five classes of commercial mortgage pass-through certificates from JPMorgan Chase Commercial Mortgage Securities Corp.’s series 2003-CIBC7, a U. S. commercial mortgage-backed securities (CMBS) transaction. In addition, we affirmed our ‘AAA (sf)’ rating on the class X-1 interest-only (IO) certificates and discontinued our ‘AAA (sf)’ rating on class C from the same transaction (see list).

Our upgrades on the principal - and interest-paying certificates follow our analysis of the transaction, primarily using our criteria for rating U. S. and Canadian CMBS transactions, which included a review of the credit characteristics and performance of the remaining loans in the pool, the transaction’s structure, and the liquidity available to the trust. The raised ratings also reflect our expectation of the available credit enhancement for these classes (which we believe is greater than our most recent estimate of necessary credit enhancement for the respective rating levels), our views regarding the current and future performance of the transaction's collateral, and the trust balance’s significant reduction. Additionally, the upgrade of class H’s rating to ‘B (sf)’ from ‘D (sf)’ considers that this class was previously lowered to ‘D (sf)’ due to accumulated interest shortfalls that we expected to remain outstanding for a prolonged period of time. We raised our rating on this class because the interest shortfalls have since been resolved in full and we do not believe, at this time, that a further default of this class is virtually certain.

While available credit enhancement levels suggest further positive rating movements on classes E through H, our analysis also considered the bonds’ interest shortfall history and position in the waterfall, as well as the magnitude of liquidity support available to the bonds to insulate them from any future liquidity interruptions.

We affirmed our ‘AAA (sf)’ rating on the class X-1 IO certificates based on our criteria for rating IO securities, which provide that we will maintain thecurrent ratingon such IO class until all of the classes that the IO security references are either lowered to below 'AA - (sf)' or have been retired--at which time we will withdraw the IO rating.

We discontinued our ‘AAA (sf)’ rating on the class C certificates following the full repayment of its outstanding principal balance as noted in the July 12, 2016, trustee remittance report.

TRANSACTION SUMMARY

As of the July 12, 2016, trustee remittance report, the collateral pool balance was $91.7 million, which is 6.6% of the pool balance at issuance. The pool currently includes 34 loans (reflecting crossed loans), down from 184 loans at issuance. None of these loans are with the special servicer, 10 loans($31.1 million, 33.9%) are defeased, and five loans ($14.8 million, 16.2%) areon the master servicer’s watchlist. The master servicer, Midland Loan Services, reported financial information for all of the nondefeased loans in the pool, of which 92.8% was partial or year-end 2015 data, and the remainder year-end 2014 data.

We calculated a 1.58x S&P Global Ratings weighted average debt service coverage (DSC) and 27.3% S&P Global Ratings weighted average loan-to-value (LTV) ratio using a 7.71% S&P Global Ratings weighted average capitalization rate. The DSC, LTV, and capitalization rate calculations exclude the 10 defeased loans. The top 10 nondefeased loans have an aggregate outstanding pool trust balance of $44.4 million (48.4%). Using servicer-reported numbers, we calculated a S&P Global Ratings weighted average DSC and LTV of 1.59x and 28.0%, respectively, for the top 10 nondefeased loans.

To date, the transaction has experienced $53.3 million in principal losses (3.8% of the original pool trust balance). We do not expect any additional losses in the near term.