DBRS Downgrades One Class of J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4

DBRS has today downgraded one class of J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4 (the Trust), as follows:

-- Class N to D (sf) from C (sf)

This rating action reflects the most recent losses to the Trust, resulting from the pass-through of non-recoverable P&I payment advances and from the liquidation of one loan in June 2012. As of the June 2012 remittance report, realized losses for these actions total $2.3 million; to date, 15 loans have liquidated at a cumulative loss of $43.8 million. Additionally, DBRS has removed the Interest in Arrears designation from this class.

In the June 2012 remittance report, the master servicer passed through $2.1 million in non-recoverable P&I payment advances associated with the Western U.S. Alliance Data Systems portfolio loan (Prospectus ID#5) as a loss. This loss represented advanced P&I payments from November 2011 to May 2012. The portfolio, which consisted of five office properties at issuance, transferred to special servicing in January 2010 after the borrower failed to post a letter of credit when Alliance Data Systems vacated the property in Dallas, Texas, when its lease expired. To resolve the loan, a forbearance agreement was reached, allowing the borrower to sell the properties in the portfolio, whereby the net proceeds from the sales would be applied to the current loan balance. The three properties located in Diamond Bar, California, were sold in September 2011 and the property in Tigard, Oregon, was sold in June 2012. As of the June 2012 remittance, only the property in Dallas remains in the portfolio.

Southwest Center, which was part of the Western U.S. Alliance Data Systems portfolio (Prospectus ID#5), was secured by an 88,000 sf office property in Tigard, Oregon. At issuance, the property was valued at $20.5 million and the most recent appraisal, from May 2011, valued the property at $10.7 million. According to the June 2012 remittance report, the property was sold for $10.6 million, resulting in a realized loss to the Trust of $230,000 and a loss severity of 1.96%.

For additional detail on the DBRS viewpoint for this transaction, and for details on the largest loans in the pool, the loans in special servicing and the loans on the servicer’s watchlist, please see the June 2012 Monthly CMBS Surveillance Report for this transaction, which will be published shortly.

Notes:
All figures are in U.S. dollars unless otherwise noted.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are CMBS Rating Methodology and CMBS North American Surveillance Methodology, which can be found on our website under Methodologies.