Fitch Affirms J.P. Morgan Chase Commercial Mortgage Securities Trust 2006-LDP9

CHICAGO--(BUSINESS WIRE)--Fitch Ratings affirms J.P. Morgan Chase Commercial Mortgage Securities Trust 2006-LDP9 commercial mortgage pass-through certificates as follows:

-- $44 million class A-1 at 'AAA';

-- $127.6 million class A-1S at 'AAA';

-- $139.8 million class A-2 at 'AAA';

-- $375 million class A-2S at 'AAA';

-- $200 million class A-2SFL at 'AAA';

-- $1,653 million class A-3 at 'AAA';

-- $145.3 million class A-3SFL at 'AAA';

-- $694 million class A-1A at 'AAA';

-- $364 million class A-M at 'AAA';

-- $121.4 million class A-MS at 'AAA';

-- $318.5 million class A-J at 'AAA';

-- $106.2 million class A-JS at 'AAA';

-- Interest-only class X at 'AAA';

-- $72.8 million class B at 'AA';

-- $24.3 million class B-S at 'AA

-- $22.8 million class C at 'AA-';

-- $7.6 million class C-S at 'AA-';

-- $50.0 million class D at 'A';

-- $16.7 million class D-S at 'A';

-- $40.9 million class E at 'A-';

-- $13.7 million class E-S at 'A-';

-- $40.9 million class F at 'BBB+';

-- $13.7 million class F-S at 'BBB+';

-- $36.4 million class G at 'BBB';

-- $12.1 million class G-S at 'BBB';

-- $45.5 million class H at 'BBB-';

-- $15.2 million class H-S at 'BBB-';

-- $18.2 million class J at 'BB+';

-- $18.2 million class K at 'BB';

-- $12.1 million class L at 'BB-';

-- $12.1 million class M at 'B+';

-- $6.1 million class N at 'B';

-- $12.1 million class P at 'B-/DR1'.

Fitch does not rate the $54.6 million class NR.

The rating affirmations reflect minimal paydown since issuance and stable performance of the pool. As of the August 2008 distribution date, the transaction has paid down by 0.04% to $4.835 billion from $4.854 at issuance. In total, 18 loans are considered Fitch loans of concern (4.4%), including six specially serviced assets (1.8%). The largest specially serviced loan (0.5%) is secured by a multifamily property in Bradenton, FL. The loan is current, but it was transferred to special servicing in June 2008 due to the borrower's failure to set up a lockbox. The special servicer is currently working with the master servicer and borrower to establish the lockbox.

Two (0.4%) of the five specially serviced assets are multifamily properties located in Houston, TX. The borrowing entities, controlled by MBS Cos., declared bankruptcy immediately prior to the special servicer filing for foreclosure. Vacant units were stripped of appliances and are in poor condition. The special servicer is determining the cost to bring all units to leasable condition. Losses are expected.

Fitch considers the following loans to have investment grade shadow ratings: The Belnord, Merchandise Mart, Centro Heritage Portfolio III, Raytheon LAX, and Tysons Galleria. The Belnord (7.8%) is a mixed-use property consisting of 215 residential units and 60,514 square feet (sf) of retail space located on the Upper West Side neighborhood of Manhattan, NY. The borrower is currently renovating the property and is in the process of converting the rent controlled/stabilized residential units and below-market leases on the retail space to market rents. At issuance, there were 141 rent controlled/stabilized units. As of June 30, 2008, there were 130 rent controlled/stabilized units. The current rate of conversion is consistent with Fitch's expectation at issuance. The debt service reserve is approximately $36.8 million.

Merchandise Mart (3.6%) is a 3.4 million sf trade mart and office property located in downtown Chicago, IL. Major tenants include MTS-MM LLC, Banker's Life and Casualty Company (rated 'BBB', with a Negative Outlook by Fitch) and CCC Information Services. The property benefits from the sponsorship of Vornado Realty Trust (rated 'BBB', Outlook Stable), a real estate investment trust (REIT). Occupancy as of February 2008 has increased to 98.7% from 95% at issuance. Centro Heritage Portfolio III (3.0%), the eighth largest loan in the pool, is collateralized by a portfolio consisting of 2.6 million sf in 14 retail properties located throughout IL, WI, IA, IN and MO. The sponsor is Centro Watt America REIT IGA, a partnership between Australian-based Centro Properties Group (rated 'CCC', and on Rating Watch Negative) and Watt Commercial Properties of Los Angeles. Occupancy as of year-end 2007 is 90% compared to 93.6% at issuance.

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