DBRS Confirms All Classes of JPMCC Commercial Mortgage Securities Trust 2015-JP1

DBRS Limited (DBRS) confirmed all classes of Commercial Mortgage Pass-Through Certificates, Series 2015-JP1 issued by JPMCC Commercial Mortgage Securities Trust 2015-JP1 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-5 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 (high) (sf)
-- Class B at AA (sf)
-- Class X-C at A (high) (sf)
-- Class C at A (sf)
-- Class X-D at A (low) (sf)
-- Class D at BBB (high) (sf)
-- Class X-E at BBB (high) (sf)
-- Class E at BBB (sf)
-- Class F at BB (high) (sf)
-- Class G at BB (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 consists of 51 fixed-rate loans secured by 58 properties, and as of the October 2017 remittance, there has been a collateral reduction of 0.9% as a result of scheduled loan amortization. Loans representing 96.5% of the pool balance reported YE2016 financials, and these loans reported a weighted-average (WA) debt service coverage ratio (DSCR) and debt yield of 1.67 times (x) and 9.6%, respectively, compared with the DBRS term DSCR and debt yield of 1.45x and 8.3%, respectively. The largest 15 loans reported a WA YE2016 DSCR of 1.72x compared with 1.47x at DBRS’s original analysis, representing a WA cash flow improvement of 18.6%. These loans reported a WA debt yield of 9.7%. Six loans — representing 30.9% of the pool, including three of the largest 15 loans — were structured with full-term interest-only (IO) payments. An additional 21 loans, representing 36.3% of the pool, have partial IO periods ranging from 12 months to 60 months. As of the October 2017 remittance, 13 loans representing 25.3% of the pool balance have remaining IO periods, and these loans reported a stable WA DSCR and debt yield of 1.53x and 9.8%, respectively.

As of the October 2017 remittance, there are six loans representing 6.7% of the pool being monitored on the servicer’s watchlist. Four of these loans, representing 3.1% of the pool balance, are being monitored for non-performance-related issues limited to deferred maintenance.

The Hyatt Place Houston loan (Prospectus ID#38; 0.81% of the current pool balance) was flagged for a depressed DSCR as a result of ongoing renovations and soft market dynamics. Based on the October 2017 Significant Insurance Event report forwarded by the servicer, the subject suffered minor damages as a result of Hurricane Harvey. DBRS will continue to monitor for developments, providing updated commentary on the DBRS Viewpoint platform as new information becomes available.

Classes X-A, X-B, X-C, X-D and X-E are IO certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated reference tranche adjusted upward by one notch if senior in the waterfall.

All ratings will be subject to ongoing surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

DBRS has provided updated loan-level commentary and analysis for larger and pivotal watchlisted loans in the transaction, as well as for the top 15 loans, in the DBRS Viewpoint 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 DBRS Viewpoint at viewpoint.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.

The principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. Please note that not every related methodology listed under a principal Structured Finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

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

The rated entity or its related entities did participate initially in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

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