Fitch Upgrades 1 Class of JPMCCM 2005-LDP1

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

KEY RATING DRIVERS

The upgrade to class F reflects increased credit enhancement to the class from loan payoffs as well as better than expected recoveries on the resolved specially serviced assets.

Fitch modeled losses of 34% of the remaining pool; expected losses on the original pool balance total 4%, including $86.6 million (3% of the original pool balance) in realized losses to date. The pool is very concentrated with only 19 assets remaining; approximately 73% of which are backed by retail properties. Fitch has designated nine loans (53.7%) as Fitch Loans of Concern, which includes six specially serviced assets (46.4%).

As of the December 2015 distribution date, the pool's aggregate principal balance has been reduced by 97% to $86.8 million from $2.88 billion at issuance. Per the servicer reporting, one loan (0.9% of the pool) is defeased. Interest shortfalls are currently affecting classes H through NR.

The largest contributor to expected losses is the real estate owned (REO) Southbridge Mall (10.4% of the pool), a 223,000 sf mall located in Mason City, IA, which is located near the Iowa, Minnesota border, about halfway between Des Moines and Minneapolis. Foreclosure was completed and title transferred in December 2012. The mall is anchored by Younkers (22% of NRA through 2019). As of the July 2015 rent roll, the property was reported to be 52% occupied after JC Penney (22% of the NRA) vacated in April 2015, prior to its lease maturity. Local officials are reportedly working on a development plan, which would involve leasing and re-purposing the former JC Penney space into a new hockey/entertainment venue. Any marketing of the property for sale by the special servicer is not expected until at least second quarter 2016.

The next largest contributor to expected losses is the REO Indian River Office Building (11.5%), a 94,000 sf medical office property located in Vero Beach, FL. The loan transferred to special servicing in January 2014 due to imminent default. Foreclosure was completed and title transferred in May 2015. The property began suffering occupancy declines in 2011 most likely due to increased competition from newer properties in the area. As of the November 2015 rent roll, the property was approximately 52% leased. Property management is focused on cleaning up and leasing the property. The property is expected to be imminently marketed for sale.

The third largest contributor to expected losses is the REO former Harley Davidson Center (10.2%), a 104,000 sf retail property located in Las Vegas, NV. Foreclosure was completed and title transferred in September 2015. The loan was unable to repay at its maturity after its largest tenant, Las Vegas Harley Davidson (64% of NRA), vacated the property at lease expiration in January 2015. The special servicer is attempting to lease up the vacant space prior to marketing the property for sale.

RATING SENSITIVITIES

Class F was assigned a Stable Outlook. Upgrades to the class were limited due to the concentration of the pool with the majority considered Fitch Loans of Concern, including six specially serviced assets. Further, 46% of the pool isn't scheduled to mature until at least 2019.

Class G may be upgraded in the future should specially serviced assets be resolved with limited losses. Class H may be subject to further downgrade as additional losses are realized.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has upgraded the following:

--$15.1 million class F to 'BBBsf' from 'Bsf'; Outlook Stable.

Fitch has affirmed the following classes as indicated:

--$28.8 million class G at 'CCCsf'; RE 100%;

--$32.4 million class H at 'Csf'; RE 45%.

--$10.6 million 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

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=997900

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=997900

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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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, +1 212-908-0278
sandro.scenga@fitchratings.com

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, +1 212-908-0278
sandro.scenga@fitchratings.com