Fitch Downgrades 2 Distressed Classes of JPMCC 2005-LDP1

NEW YORK--()--Fitch Ratings has downgraded two distressed classes and affirmed 18 classes of JP Morgan Chase Commercial Mortgage Securities Corp. series 2005-LDP1 (JPMCC 2005-LDP1) commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Fitch modeled losses of 7.7% of the remaining pool; expected losses on the original pool balance total 6.2%, including $59 million (2.1% of the original pool balance) in realized losses to date. Fitch has designated 41 loans (25.8%) as Fitch Loans of Concern, which includes 10 specially serviced assets (5.6%).

As of the January 2013 distribution date, the pool's aggregate principal balance has been reduced by 45.9% to $1.56 billion from $2.88 billion at issuance. Per the servicer reporting, 19 loans (18.9% of the pool) are defeased. Interest shortfalls are currently affecting classes H through NR.

The largest contributor to expected losses is the specially-serviced Independence Plaza loan (1.2% of the pool), which is secured by a 252,000 square foot (sf) retail shopping center located in Hamilton Township, NJ. The loan was transferred to special servicing in March 2010. Subsequently, the property lost its grocery anchor to bankruptcy in 2011; and another large tenant, T.J. Maxx, vacated its space at maturity in January 2013. As of the Oct. 31, 2013 rent roll, the property was only 25% occupied. Additionally, an environmental study is under review. A settlement agreement that provides for a consensual foreclosure action was executed in July 2013; foreclosure is expected to be completed by mid-2014.

The next largest contributor to expected losses is the Preston Center Pavilion & Square loan (2.6%), which is secured by a 233,000 sf retail center located in Dallas, TX. In 2013, occupancy dropped to 73% from 95% as the largest tenant downsized its space by approximately 19,000 sf as part of a 10-year renewal and the third largest tenant vacated its space at lease expiration in January 2013. While no recent leasing activity has been reported as the property, the loan was recently assumed by experienced sponsorship. Further, less than 5% of the NRA rolls through 2016.

RATING SENSITIVITY

Rating Outlooks on classes A-1A through C remain Stable due to increasing credit enhancement and continued paydown. Rating Outlooks on classes D through F are Negative due to the potential for further negative credit migration of the underlying collateral including continued transfers to special servicing or performance declines of current loans.

Distressed classes (those rated below 'B') may be subject to further downgrades as additional losses are realized.

Fitch downgrades the following classes and assigns or revises Recovery Estimates (REs) as indicated:

--$28.8 million class G to 'CCsf' from 'CCCsf', RE 0%;

--$32.4 million class H to 'Csf' from 'CCsf', RE 0%.

Fitch affirms the following classes and assigns or revises Rating Outlooks as indicated:

--$54 million class D at 'BBBsf', Outlook to Negative from Stable;

--$28.8 million class E at 'BBsf', Outlook to Negative from Stable.

Fitch affirms the following classes as indicated:

--$222.6 million class A-1A at 'AAAsf', Outlook Stable;

--$43.9 million class A-2 at 'AAAsf', Outlook Stable;

--$157.5 million class A-3 at 'AAAsf', Outlook Stable;

--$601.5 million class A-4 at 'AAAsf', Outlook Stable;

--$14.4 million class A-SB at 'AAAsf', Outlook Stable;

--$94.3 million class A-J at 'AAAsf', Outlook Stable;

--$100 million class A-JFL at 'AAAsf', Outlook Stable;

--$68.4 million class B at 'AAsf', Outlook Stable;

--$25.2 million class C at 'Asf', Outlook Stable;

--$46.8 million class F at 'Bsf', Outlook Negative;

--$10.8 million class J at 'Csf', RE 0%;

--$14.4 million class K at 'Csf', RE 0%;

--$10.8 million class L at 'Csf', RE 0%;

--$2.2 million class M at 'Dsf', RE 0%;

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

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

The class A-1 certificates 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 on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance then CMBS then Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=820042

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Stacey McGovern, +1 212-908-0722
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1 212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Stacey McGovern, +1 212-908-0722
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1 212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com