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

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

-- Class E to D (sf) from C (sf)
-- Class F to D (sf) from C (sf)
-- Class G to D (sf) from C (sf)
-- Class H to D (sf) from C (sf)
-- Class J to D (sf) from C (sf)

Additionally, DBRS has changed the trend on Class A-J to Stable from Negative.

These rating actions reflect the most recent losses to the Trust, resulting from the liquidation of two loans in July 2013. The trend change on Class A-J is warranted given the two subject loans were liquidated from the pool quickly since the last DBRS rating action in May 2013, limiting the accrual of additional expenses that would be charged against Trust principal. Additionally, as a result of the liquidations, previous interest shortfalls to Class D through Class K have been repaid. As of the July 2013 remittance report, realized losses for these loans total $122.56 million; to date, 18 loans have liquidated at a cumulative loss of $187.14 million.

The Silver City Galleria loan (Prospectus ID#2), was secured by a 715,000 square foot (sf) portion of a 970,000 sf regional mall in Taunton, Massachusetts. The loan transferred to special servicing in October 2009 due to imminent default. With the July 2013 remittance, the asset was liquidated from the pool. At issuance, the property was valued at $200 million and the most recent appraisal, from May 2013, valued the property at $22.1 million. According to the July 2013 remittance report, the property was sold for $23.49 million, resulting in a realized loss to the Trust of $108.25 million and a loss severity of 91.2%.

The Executive Office Plaza loan (Prospectus ID#29), was secured by a portfolio of three office buildings totaling 270,000 sf in Springdale, Ohio. The loan transferred to special servicing in August 2012 after the borrower informed the servicer it would be unable to pay the September maturity balloon payment. With the July 2013 remittance, the asset was liquidated from the pool. At issuance, the property was valued at $30.4 million and the most recent appraisal, from October 2012, valued the property at $6.2 million. However, the servicer executed a note sale for the portfolio with the borrower in April 2013 at a purchase price of $4.5 million. According to the July 2013 remittance report, gross proceeds for the portfolio totaled $5.55 million, resulting in a realized loss to the Trust of $14.34 million and a loss severity of 75.7%.

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 July 2013 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 (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies.