DBRS Confirms All Classes of JPMCC Commercial Mortgage Securities Trust 2016-JP2

DBRS Limited (DBRS) has today confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2016-JP2 issued by JPMCC Commercial Mortgage Securities Trust 2016-JP2 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-S at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class X-C at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (low) (sf)
-- Class F at B (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has remained in line with DBRS’s expectations since issuance. The collateral for this transaction consists of 47 fixed-rate loans secured by 78 commercial and multifamily properties. As of the July 2017 remittance, there has been a collateral reduction of 0.4% as a result of scheduled loan amortization. Loans representing 97.9% of the current pool balance reported YE2016 cash flow figures. Those loans reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.70 times (x) and 9.6%, respectively, compared with the DBRS WA DSCR and WA debt yield of 1.80x and 10.0%, respectively, at issuance. The largest 15 loans in the pool reported a WA DSCR and debt yield of 1.80x and 9.5%, respectively, reflective of a WA net cash flow growth of 14.7% over the DBRS issuance figures.

As of the July 2017 remittance, there were four loans, representing 4.8% of the current pool balance, on the servicer’s watchlist. Two of these loans are being monitored for a low DSCR, and one loan is being monitored for low occupancy. The last loan is being monitored for damages sustained from Hurricane Matthew; however, insurance proceeds were received, and all repairs have been completed. There are no loans in special servicing.

At issuance, DBRS shadow-rated The Shops at Crystals loan (Prospectus ID#6, 5.3% of the pool balance) as investment grade. DBRS has today confirmed that the performance of this loan remains consistent with investment-grade characteristics.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans, as well as for the largest 15 loans in the pool, in the DBRS commercial mortgage-backed securities (CMBS) IReports platform. Registration is free. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please register or log into 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 principal methodology is CMBS North American Surveillance (March 2017), which can be found on dbrs.com under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.