DBRS Upgrades One Class and Assigns Positive Trends to J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4

DBRS Limited (DBRS) upgraded the rating on the following class 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 C to BB (high) (sf) from BB (sf)
DBRS also confirmed the rating on the following class:
-- Class B at A (high) (sf)

DBRS assigned a Positive trend to both classes.

The rating upgrade and Positive trend assignments 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 11 of the original 184 loans outstanding as of the November 2017 remittance. Over the past year, one loan prepaid from the Trust, representing a principal paydown of $12.1 million. In total, 30 loans have been liquidated from the Trust at a combined realized loss of $215.4 million since issuance.

As of the November 2017 remittance, eight loans, representing 69.2% of the current pool balance, are reporting YE2016 financials and based on those figures, the weighted-average (WA) debt service coverage ratio and WA debt yield were 1.60 times and 18.0%, respectively. The largest loan, Prospectus ID#17 – 23 Main Street, representing 35.7% of the current pool balance, is scheduled to mature in 2018 and reported an exit debt yield of 14.8%. There are two loans in special servicing and two loans on the servicer’s watchlist, representing 30.3% and 8.2% of the current pool balance, respectively. One loan, representing 0.5% of the current pool balance, is fully defeased.

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 provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans and specially serviced loans in the transaction, 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.

The ratings assigned to Class B and C materially deviate from the higher ratings 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. The deviations are warranted given the uncertain loan level event risk surrounding the loans in special servicing and the increased concentration of the pool.

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

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.

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 under Related Documents or by contacting us at info@dbrs.com.

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

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

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