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

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

-- Class K to D (sf) from C (sf)
-- Class L to D (sf) from C (sf)
-- Class M to D (sf) from C (sf)

DBRS has discontinued the rating of the following class:

-- Class A-3A1 to Discontinued-Repaid from AAA (sf)

DBRS has confirmed Class G and Class H at C (sf), replacing the Interest in Arrears status.

These rating actions reflect the most recent losses and proceeds to the Trust, resulting from the liquidation of one loan, Western U.S. Alliance Data Systems Portfolio (Prospectus ID #5), in November 2012. Additionally, as a result of Class K through Class M being downgraded to D (sf), the interest in arrears designation for these classes has been removed. As of the November 2012 remittance report, realized losses for this loan total $22.42 million; to date, 16 loans have liquidated at a cumulative loss of $67.45 million.

The Western U.S. Alliance Data Systems Portfolio loan was secured by a portfolio of five office properties across three states totaling 486,000 sf. The loan 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. As part of the strategy to resolve the loan, the special servicer granted a forbearance agreement, allowing the borrower to sell the properties in the portfolio, with net proceeds from the sales to be applied to the outstanding 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 for a collective loss of $3.43 million.

With the November 2012 remittance, the Alliance Data Systems building, the last remaining property in the portfolio, was sold and the loan was liquidated. At issuance, the property was valued at $36 million and the most recent appraisal, from February 2012, valued the property at $6 million. According to the November 2012 remittance report, the property was sold for $8.39 million, resulting in a realized loss to the Trust of $22.42 million and a loss severity of 81.21%. This brings total losses to date for the portfolio loan to $25.85 million.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction including details on the largest loans in the pool, the loans in special servicing and the loans on the servicer’s watchlist. The November 2012 Monthly Surveillance Report for this transaction will publish shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

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 (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies.