NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns ratings and Rating Outlooks to JPMBB Commercial Mortgage Securities Trust 2015-C29 commercial mortgage pass-through certificates as follows:
--$48,951,000 class A-1 'AAAsf'; Outlook Stable;
--$212,993,000 class A-2 'AAAsf'; Outlook Stable;
--$60,000,000 class A-3A1 'AAAsf'; Outlook Stable;
--$75,000,000(b) class A-3A2 'AAAsf'; Outlook Stable;
--$223,062,000 class A-4 'AAAsf'; Outlook Stable;
--$69,138,000 class A-SB 'AAAsf'; Outlook Stable;
--$753,136,000(a) class X-A 'AAAsf'; Outlook Stable;
--$54,147,000(a) class X-B 'AA-sf'; Outlook Stable;
--$63,992,000 class A-S 'AAAsf'; Outlook Stable;
--$54,147,000 class B 'AA-sf'; Outlook Stable;
--$44,302,000 class C 'A-sf'; Outlook Stable;
--$162,441,000 class EC 'A-sf'; Outlook Stable;
--$52,916,000 class D 'BBB-sf'; Outlook Stable;
--$44,302,000(ab) class X-C 'A-sf'; Outlook Stable;
--$52,916,000(ab) class X-D 'BBB-sf'; Outlook Stable;
--$20,920,000(ab) class X-E 'BBsf'; Outlook Stable;
--$11,076,000(ab) class X-F 'Bsf'; Outlook Stable;
--$20,920,000(b) class E 'BBsf'; Outlook Stable;
--$11,076,000(b) class F 'Bsf'; Outlook Stable.
(a) Notional amount and interest-only.
(b) Privately placed and pursuant to Rule 144A.
The expected ratings are based on information provided by the issuer as of June 30, 2015. Fitch is not rating the $47,993,856(ab) X-NR and $47,993,856(b) NR classes.
The certificates represent the beneficial ownership interest in the trust, primary assets of which are 63 loans secured by 85 commercial properties having an aggregate principal balance of approximately $984.5 million as of the cutoff date. The loans were contributed to the trust by JPMorgan Chase Bank, N.A.; Barclays Bank plc; RAIT Funding, LLC; Redwood Commercial Mortgage Corporation; and Starwood Mortgage Funding II, LLC.
Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 65.6% of the properties by balance, cash flow analysis of 73.8%, and asset summary reviews on 86.2% of the pool.
KEY RATING DRIVERS
Fitch Leverage: The transaction has lower leverage than other recent Fitch-rated fixed-rate multiborrower transactions. The pool's Fitch debt service coverage ratio (DSCR) of 1.22x is greater than both the YTD 2015 average of 1.18x and the 2014 average of 1.19x, and the pool's Fitch loan-to-value (LTV) of 108.0% is lower than both the YTD 2015 average of 110.4% and slightly above the 2014 average of 106.2%.
Pool Concentration: The 10 largest loans in the transaction account for 43.2% of the pool by balance. This is lower than the YTD 2015 average of 48.5% and lower than the 2014 average of 50.5%. The pool's below-average concentration resulted in a loan concentration index (LCI) of 292, which was lower than the YTD 2015 and 2014 averages of 387 and 331, respectively. Two of the six largest loans (9.25% of the pool) are secured by properties located in Houston.
Amortization: The pool is scheduled to amortize by 13.9% of the initial pool balance prior to maturity, which is greater than the 2014 average of 12.0%. Six loans (17.5%) are full-term interest-only and 33 loans (49.12%) are partial interest-only. One loan (1.54%) is fully amortizing. The remaining 23 loans (31.8%) are amortizing balloon loans with loan terms of five to 10 years.
RATING SENSITIVITIES
For this transaction, Fitch's net cash flow (NCF) was 13.0% below the most recent net operating income (NOI; for properties for which a recent NOI was provided, excluding properties that were stabilizing during this period). Unanticipated further declines in property-level NCF could result in higher defaults and loss severities on defaulted loans, and could result in potential rating actions on the certificates.
Fitch evaluated the sensitivity of the ratings assigned to JPMBB 2015-C29 certificates and found that the transaction displays slightly average sensitivity to further declines in NCF. In a scenario in which NCF declined a further 20% from Fitch's NCF, a downgrade of the senior 'AAAsf' certificates to 'A-sf' could result. In a more severe scenario, in which NCF declined a further 30% from Fitch's NCF, a downgrade of the senior 'AAAsf' certificates to 'BBB-sf' could result. The presale report includes a detailed explanation of additional stresses and sensitivities on pages 10 - 11.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Additional information is available at www.fitchratings.com.
Applicable Criteria
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14
May 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158
Criteria for Analyzing Multiborrower U.S. and Canadian Commercial
Mortgage Transactions (pub. 28 May 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865499
Global Structured Finance Rating Criteria (pub. 31 Mar 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268
Rating Criteria for U.S. Commercial Mortgage Servicers (pub. 14 Feb 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
(pub. 10 Dec 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=987241
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=987241
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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