Fitch Ratings has affirmed all classes of J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-HSBC (JPMCC 2012-HSBC).

RATING ACTIONS

ENTITY/DEBT	RATING		PRIOR

JPMCC 2012- HSBC

A 46637YAA7

LT	AAAsf 	Affirmed		AAAsf

B 46637YAG4

LT	AAAsf 	Affirmed		AAAsf

C 46637YAJ8

LT	AAsf 	Affirmed		AAsf

D 46637YAL3

LT	Asf 	Affirmed		Asf

E 46637YAN9

LT	Asf 	Affirmed		Asf

X-A 46637YAC3

LT	AAAsf 	Affirmed		AAAsf

X-B 46637YAE9

LT	AAsf 	Affirmed		AAsf

VIEW ADDITIONAL RATING DETAILS

KEY RATING DRIVERS

Relatively Stable to Improved NCF/Low Trust Leverage: Although the Fitch stressed net cash flow (NCF) is 3.4% below Fitch's last review due to increased real estate taxes and repairs and maintenance expenses and slight decline in occupancy, it has improved 12% since issuance largely due to the largest tenant, HSBC (63% of total square footage; AA-/F1+/Negative), lease renewal at a significantly higher rent. HSBC's rent increased to ($77 per square foot [psf]) May 1, 2020 from ($51 psf) as of the December 2019 rent roll. Fitch's analysis reflects the higher rent and includes the expected rent bump for tenant VC Capital LLC which will occur in November 2020. HSBC extended its lease from April 30, 2020 to April 30, 2025, which is three years past the loan's maturity in 2022.

Fitch Ratings' stressed debt service coverage ratio (DSCR) for the trust component of the debt is 1.87x, and the stressed loan to value (LTV) is 47.4%. The Fitch Ratings' stressed debt service coverage ratio for the total debt is 1.28x and the stressed loan to value (LTV) is 69.5%. The affirmations reflect stable performance since Fitch's last rating action.

Historical Strong Occupancy: The property continues to exhibit strong occupancy since issuance despite the slight decline to 96.4% as of December 2019 from 99.5% in 2018 and rents remain below market at $76 psf. The largest tenants are HSBC (63%), Baker & McKenzie (12%) and Man Investment Group (6%). The most recent servicer reported year-end (YE) 2019 NCF DSCR is 1.17x compared with 1.31x YE 2018 and 1.41x YE 2017. The property is located in the Grand Central Submarket of NYC. Per Reis as of 1Q20, the New York Metro office vacancy is 8.4% with average asking rent $75.55 psf. The Grand Central submarket Class A vacancy rate is 8.4% with average asking rent of $91.80 psf. As of December 2019 RR, the property has a vacancy rate of 4.3% with below market average in place rent of $76 psf.

Coronavirus Impact: The loan has a minimal concentration of retail tenants including HSBC Bank, Staples, and Panera, which are currently open. Fitch has asked the servicer if any tenants have asked for coronavirus-related rent relief, but has not received a response.

Asset Quality/Location: The property is a class A, 30-story tower with expansive views of Manhattan. The property also has a 31,000-sf vault at the basement level, which cannot be found anywhere in New York City, except the Federal Reserve building. The property is located in Manhattan and has frontage to Bryant Park on the southeast corner. Demand for the Bryant Park area has grown in recent years with One Bryant Park, 1095 Sixth Avenue and the presence of the Grace Building, three of the highest quality Manhattan office buildings, all benefiting from excellent location relative to Times Square and Grand Central Station.

Single Asset: The transaction is secured by a single property and is, therefore, more susceptible to single event risk related to the market, sponsor or the largest tenants occupying the property. The JPMCC Mortgage Securities Trust 2012-HSBC (JPMCC 2012-HSBC) certificates, which follow a sequential pay structure, represent the beneficial interests in the mortgage loan securing the HSBC Tower property located in New York, NY. In addition to the current $286.4 million trust debt component, the loan structure includes $100 million of mezzanine financing held outside the trust. The 10-year loan had an initial five-year interest-only period and began amortizing as of Aug. 1, 2017.

RATING SENSITIVITIES

The Rating Outlook for all classes remains Stable. No rating actions are anticipated unless there are material changes in property occupancy or cash flow. The property performance is consistent with issuance.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

An upgrade to classes C, D, E and X-B may occur with significant improved performance of the underlying asset and continued amortization.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

A significant decline in asset occupancy;

A significant deterioration in property cash flow.

For more information on Fitch's original rating sensitivity on the transaction, please refer to the new issuance report.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

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

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG CONSIDERATIONS

The highest level of ESG credit relevance, if present, is a score of 3. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity(ies), either due to their nature or to the way in which they are being managed by the entity(ies). For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.

Additional information is available on www.fitchratings.com

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