DBRS Upgrades Two Classes and Confirms One Class of J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4

DBRS Limited (DBRS) has today upgraded the ratings on the following classes of the Commercial Mortgage Pass-Through Certificates, Series 2005-LDP4 issued by J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4 (the Trust):

-- Class B to A (high) (sf) from BB (high) (sf)
-- Class C to BB (sf) from B (sf)

DBRS has also confirmed the rating on the following class:

-- Class X-1 at AAA (sf)

All trends are Stable.

The rating upgrades reflect the increased credit support to the bonds as a result of loan amortization, proceeds recovered from loan liquidations and successful loan repayment. Since issuance, the pool has experienced a collateral reduction of 97.5%, with 12 of the original 184 loans outstanding as of the January 2017 remittance. Over the past year, three loans were liquidated from the Trust with combined realized losses totaling $3.6 million, which were contained to the defaulted Class D. In total, 30 loans have been liquidated from the Trust at a combined realized loss of $215.4 million since issuance.

As of the January 2017 remittance, 11 loans, representing 82.7% of the current pool balance, are reporting YE2015 or trailing 12 months 2016 financials. Based on the most recent full-year financials reported, the weighted-average (WA) debt service coverage ratio and WA debt yield were 1.05 times and 11.6%, respectively. Two of the three largest loans, representing 42.5% of the current pool balance, are scheduled to mature in 2018. There are two loans in special servicing and two loans on the servicer’s watchlist, representing 26.5% and 11.7% of the current pool balance, respectively.

The rating assigned to Class B materially deviates from the higher rating implied by the quantitative results. DBRS considers a material deviation to be a rating differential of three or more notches between the assigned rating and the rating implied by the quantitative results that is a substantial component of a rating methodology; in this case, the assigned rating that reflects the uncertain loan level event risk.

DBRS has provided updated loan-level commentary and analysis for the remaining loans in the pool in the DBRS CMBS IReports platform. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please log in to DBRS CMBS IReports at www.ireports.dbrs.com.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

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

The applicable methodologies are North American CMBS Rating Methodology (January 2017) and CMBS North American Surveillance (December 2016), which can be found on our website under Methodologies.