Fitch Upgrades 2 Classes of JPMCCM 2005-LDP1

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has upgraded two classes, downgraded one and affirmed six defaulted classes of JP Morgan Chase Commercial Mortgage Securities Corp. series 2005-LDP1 (JPMCCM 2005-LDP1) commercial mortgage pass-through certificates. A full list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The upgrades to the two senior classes reflect increasing credit enhancement and expectation of continued pay down relative to Fitch's expected losses. Fitch modeled losses of 10.5% of the remaining pool; expected losses on the original pool balance total 4.1%, including $114.6 million (4% of the original pool balance) in realized losses to date. One loan is defeased (1.7% of the pool)

As of the October 2016 distribution date, the pool's aggregate principal balance has been reduced by 98% to $45 million from $2.88 billion at issuance. Interest shortfalls are currently affecting classes K through NR.

Concentrated Pool: Although the transaction has experienced significant pay down, the pool is extremely concentrated with only 11 loans and one REO asset remaining. Retail properties comprise the majority of the remaining pool at 71%. The two largest loans, which have related sponsorship and account for 49% of the total pool balance, are grocery anchored community shopping centers located in Niles, IL and Virginia Beach, VA. The REO (14% of the pool), and the transaction's only specially serviced asset, is a 162,000 sf office property located in Greenwood, IN. The special servicer is focused on stabilizing the 79% occupied property prior to marketing it for sale.

Maturities: No loan matures prior to 2019. The two largest loans in the pool (49%) are scheduled to mature in December 2019.

Amortization: All performing loans are amortizing with six loans (25% of the pool) fully amortizing over their terms. The Fitch stressed LTV for the pool is 87.3%.

RATING SENSITIVITIES

The Stable Outlooks on classes F and G reflect the class's sufficient credit enhancement and expectation of continued pay down. Class F is expected to be paid in full over the next year from scheduled amortization. Further upgrades to class G may be limited due to the increasing concentration of the pool. Fitch ran an additional sensitivity analysis on the pool which applied a 50% loss to the two largest loans, both of which mature in 2019. Credit enhancement to classes F and G remained sufficient to support the ratings.

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.

Fitch has upgraded the following ratings:

--$1.3 million class F to 'AAAsf' from 'BBBsf'; Outlook Stable;

--$28.8 million class G to 'BBsf' from 'CCCsf'; Outlook Stable.

Fitch has downgraded the following rating:

--$14.9 million class H to 'Dsf' from 'Csf'; RE 80%.

Fitch has affirmed the following ratings:

--$0 class J at 'Dsf'; RE 0%;

--$0 class K at 'Dsf'; RE 0%;

--$0 class L at 'Dsf'; RE 0%;

--$0 class M at 'Dsf'; RE 0%;

--$0 class N at 'Dsf'; RE 0%;

--$0 class P at 'Dsf'; RE 0%.

Classes A-1 through E have paid in full. Fitch does not rate the class NR certificates. Fitch previously withdrew the ratings on the interest-only class X-1 and X-2 certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016)

https://www.fitchratings.com/site/re/886006

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 16 Jun 2016)

https://www.fitchratings.com/site/re/882401

Global Structured Finance Rating Criteria (pub. 27 Jun 2016)

https://www.fitchratings.com/site/re/883130

U.S. and Canadian Multiborrower CMBS Surveillance Criteria (pub. 11 Nov 2016)

https://www.fitchratings.com/site/re/889634

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1015023

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1015023

Endorsement Policy

https://www.fitchratings.com/regulatory

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Copyright © 2016 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch's factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third- party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch's ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed.

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Fitch Ratings
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Fitch Ratings, Inc.
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or
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or
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Source: Fitch Ratings

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