Fitch Affirms JPMorgan 2009-RR1

NEW YORK--()--Fitch Ratings has affirmed eight classes of JPMorgan Commercial Mortgage-Backed Securities Trust 2009-RR1 (JPMorgan 2009-RR1). A detailed list of the rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are the result of the mostly stable ratings and shadow ratings of the underlying bonds. All but two of the underlying bonds have a Fitch rating or shadow rating of 'AAAsf'. Class A-4 in GSMS 2007-GG10 is rated 'Asf'; Outlook Negative, and class A-4 in JPMCC 2006-CIBC15 is rated 'AAsf'; Outlook Negative. Additionally, the class A-4s in MLCFC 2007-5 and MLCFC 2007-6 are rated 'AAAsf', Outlook Negative. These ratings were incorporated into Fitch's analysis of the Re-REMIC.

This transaction is a re-securitization of the ownership interest in 15 commercial mortgage-backed certificates, which total $558.3 million. Principal and interest from the underlying commercial mortgage-backed certificates are pooled and applied first to the A4A certificates pro rata and second to the A4B certificates pro rata. Losses are applied first to the A4B certificates pro rata and then to the A4A certificates.

Credit enhancement for classes A4A, A4A-V, and A4A-Z is approximately 50% and is provided by the structural support of the underlying transactions and the A4B certificates. Credit enhancement for the A4B, A4B-1 and A4B-2 certificates is approximately 30% and is provided by the structural support of the underlying transactions.

This transaction was analyzed under the framework described in the report 'Global Rating Criteria for Structured Finance CDOs' using the Portfolio Credit Model (PCM) for projecting future default levels for the underlying portfolio. The Rating Loss Rates (RLR) were then compared to the credit enhancement of the classes. Based on this analysis, the credit enhancement levels for the A4A and A4B certificates are consistent with the ratings indicated below.

RATING SENSITIVITIES

Based on sensitivity analysis with respect to the underlying bonds with a iNegative Outlook, the Re-REMIC bonds continue to have Stable Outlooks, as no rating changes are expected at this time. However, upgrades to the A4B classes are possible should there be favorable resolutions to some of the specially serviced assets and more stable outlooks on the underlying bonds. Further negative migration of the underlying bonds could also lead to downgrades.

As of the July 2014 distribution date, the underlying bonds collateralizing this transaction are as follows:

--8.7% interest in the MLCFC Commercial Mortgage Pass-Through Certificates 2007-5 Class A4, in the amount of $92.6 million (16.6% of pool).

--8.8% interest in the LBUBS Commercial Mortgage Pass-Through Certificates 2007-C6 Class A4, in the amount of $75.4 million (13.5% of pool).

--2% interest in the GSMS Commercial Mortgage Pass-Through Certificates 2007-GG10 Class A4, in the amount of $68.1 million (12.2% of pool).

--5.8% interest in the Banc of America Commercial Mortgage Pass-Through Certificates 2007-3 Class A4, in the amount of $59.3 million (10.6% of pool).

--4.2% interest in the ML-CFC Commercial Mortgage Pass-Through Certificates 2007-9 Class A4, in the amount of $39 million (7% of pool).

--5.1% interest in the ML-CFC Commercial Mortgage Pass-Through Certificates 2007-6 Class A4, in the amount of $36.9 million (6.6% of pool).

--6.3% interest in the LB Commercial Mortgage Pass-Through Certificates 2007-C3 Class A4, in the amount of $36.1 million (6.5% of pool).

--3.7% interest in the Cobalt Commercial Mortgage Pass-Through Certificates 2006-C1 Class A4, in the amount of $25.1 million (4.5% of pool).

--2.8% interest in the JPMCC Pass-Through Certificates 2006-CB15 Class A4, in the amount of $23.8 million (4.3% of pool).

--1.2% interest in the WBCMT Pass-Through Certificates 2007-C30 Class A5, in the amount of $22.7 million (4.1% of pool).

--4.0% interest in the CSMC Pass-Through Certificates 2007-C4 Class A4, in the amount of $18.7 million (3.4% of pool).

--1.8% interest in the JPMCC Pass-Through Certificates 2007-CB20 Class A4, in the amount of $18 million (3.2% of pool).

--2.8% interest in the JPMCC Pass-Through Certificates 2007-C1 Class A4, in the amount of $16.1 million (2.9% of pool).

--1.3% interest in the LB UBS Commercial Mortgage Pass-Through Certificates 2007-C1 Class A4, in the amount of $14.4 million (2.6% of pool).

--1.7% interest in the Cobalt Commercial Mortgage Pass-Through Certificates 2007-C3 Class A4, in the amount of $11.9 million (2.1% of pool).

Fitch rates all of the underlying transactions except LBCMT 2007-C3, CSMC 2007-C4, and JPMCC 2007-C1. For purposes of this review, these transactions were re-analyzed adhering to the criteria from U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria.

Any extraordinary expenses incurred by the Trustee are paid first from an expense reserve in the amount of $250,000. Once the reserve is depleted, extraordinary expenses will be paid from available interest.

Fitch affirms the following classes:

--$391.9 million* class A4A at 'AAAsf'; Outlook Stable;

--$0** class A4A-V at 'AAAsf'; Outlook Stable;

--$0** class A4A-Z at 'AAAsf'; Outlook Stable;

--$115.4 million class A4B at 'BBBsf'; Outlook Stable;

--$35 million class A4B-1 at 'BBBsf'; Outlook Stable;

--$16 million class A4B-2 at 'BBBsf'; Outlook Stable;

--$51 million*** class A4B-X at 'BBBsf'; Outlook Stable;

--$16 million*** class A4B-Y at 'BBBsf'; Outlook Stable.

* Exchangeable Certificates

** Exchangeable REMIC Certificates

*** Notional Amount and Interest-Only

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2014);

--'Global Rating Criteria for Structured Finance CDOs' (July 16, 2014);

--'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=748821

Global Rating Criteria for Structured Finance CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=751136

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=842734

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Contacts

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

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Contacts

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