NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 18 classes of JPMCC Commercial Mortgage Securities Trust, commercial mortgage pass-through certificates, series 2015-JP1 (JPMCC 2015-JP1). A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are the result of overall stable pool performance, which reflects no material changes to pool metrics since issuance; therefore, the original rating analysis was considered in affirming the transaction.
As of the November 2016 distribution date, the pool's aggregate principal balance has been reduced by 0.4% to $795.9 million from $799.2 million at issuance. There have been no specially serviced loans since issuance. No loans are defeased.
Stable Performance with No Material Changes: All loans in the pool are current as of the November 2016 distribution with property level performance in line with issuance expectations and no material changes to pool metrics.
High Fitch Leverage: The pool demonstrates high leverage statistics with a Fitch debt service coverage ratio and loan-to-value of 1.09x and 114.1%, respectively, at issuance.
Loan of Concern: Fitch has designated one loan (2.3% of pool) as a Fitch Loan of Concern. One of the underlying properties in the Franklin Ridge Crossed Loans portfolio, 9920 Building, experienced a drop in occupancy when one tenant, which had occupied 36% of the property square footage and accounted for nearly 12% of the total crossed portfolio square footage, vacated upon its October 2016 lease expiration. The borrower is working to re-lease the space.
Pool Concentration: The largest loan in the pool, 32 Avenue of the Americas, represents 12.6% of the current pool balance and the largest 10 loans represent 55.8%. It was also noted at issuance that the loan concentration index and sponsor concentration index were higher than 2014 and 2015 averages for this transaction.
Below-Average Amortization: The pool is scheduled to amortize by 8.8% of the initial pool balance prior to maturity. Six loans (30.9% of pool) are interest-only for the full term.
The Rating Outlooks on all classes remain Stable. Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's overall portfolio-level metrics.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following classes:
--$23.2 million class A-1 at 'AAAsf'; Outlook Stable;
--$138 million class A-2 at 'AAAsf'; Outlook Stable;
--$34.9 million class A-3 at 'AAAsf'; Outlook Stable;
--$120 million class A-4 at 'AAAsf'; Outlook Stable;
--$197 million class A-5 at 'AAAsf'; Outlook Stable;
--$43 million class A-SB at 'AAAsf'; Outlook Stable;
--$31 million class A-S at 'AAAsf'; Outlook Stable;
--$587.1 million(b) class X-A at 'AAAsf'; Outlook Stable;
--$41 million class B at 'AA-sf'; Outlook Stable;
--$41 million(b) class X-B at 'AA-sf'; Outlook Stable;
--$46 million class C at 'A-sf'; Outlook Stable;
--$46 million(b) class X-C at 'A-sf'; Outlook Stable;
--$28 million class D at 'BBBsf'; Outlook Stable;
--$28 million(b) class X-D at 'BBBsf'; Outlook Stable;
--$22 million(a) class E at 'BBB-sf'; Outlook Stable;
--$22 million(a)(b) class X-E at 'BBB-sf'; Outlook Stable;
--$18 million(a) class F at 'BBsf'; Outlook Stable;
--$10 million(a) class G at 'B-sf'; Outlook Stable.
(a) Privately placed and pursuant to Rule 144A.
(b) Notional amount and interest-only.
Fitch does not rate the class NR certificates.
Additional information is available at www.fitchratings.com.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01
Criteria for Rating Caps and Limitations in Global Structured Finance
Transactions (pub. 16 Jun 2016)
Global Structured Finance Rating Criteria (pub. 27 Jun 2016)
North America and Asia-Pacific Multiborrower CMBS Surveillance Criteria
(pub. 01 Dec 2016)
JPMCC 2015-JP1 Commercial Mortgage Pass Through Certificates -- Appendix
Dodd-Frank Rating Information Disclosure Form
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