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 exhibited by the transaction since issuance. The collateral consists of 51 fixed-rate loans secured by 58 commercial and multifamily properties. As of the October 2018 remittance, the pool experienced a collateral reduction of 1.6% since issuance with all loans outstanding as the result of scheduled loan amortization with a current trust balance of $786.5 million. The top 15 loans, representing 67.1% of the pool balance, reported a weighted-average (WA) year-end (YE) 2017 debt-service coverage ratio (DSCR) and debt yield of 1.73 times (x) and 9.8%, respectively. This compares favorably with the WA DBRS Term DSCR derived at issuance for these loans of 1.47x, reflecting an overall WA net cash flow (NCF) improvement of 18.6% over the DBRS Term NCF figures.

The transaction benefits from an overall low retail concentration, with a total of 15 loans, representing 17.5% of the pool balance, secured by anchored and unanchored retail properties. Notably, out of the largest 15 loans, only one is secured by a retail property, Prospectus ID#11, Tri-County Towne Center, which represents 2.4% of the pool balance and exhibited a healthy DSCR of 1.91x at YE2017, reflective of NCF growth of over 61.3% from the DBRS NCF figure at issuance.

As of the October 2018 remittance, there were 11 loans, representing 11.5% of the pool balance, on the servicer’s watchlist. DBRS applied stressed cash flow scenarios to reflect an increased risk profile for these loans where merited. The WA YE2017 DSCR and debt yield for the watchlisted loans was 1.72x and 11.01%, respectively. Nine loans, representing 8.5% of the pool balance, are on the watchlist due to upcoming tenant rollover or large tenant vacancy. One loan, representing 1.5% of the pool balance, is on the servicer’s watchlist due to an outstanding deferred maintenance item, and the remaining loan, representing 0.6% of the pool balance, is on the servicer’s watchlist for cash flow declines.

Two loans, representing 5.6% of the pool balance, have transferred into special servicing in the last year in Prospectus ID#6, Holiday Inn Baltimore Inner Harbor (4.8% of the pool balance) and Prospectus ID#38, Hyatt Place Houston (0.8% of the pool balance). Holiday Inn Baltimore Inner Harbor was transferred to the special servicer in June 2018 due to imminent monetary default, and as of October 2018, the workout strategy is still listed as to be determined, with the special servicer confirming that negotiations with the borrower remain ongoing. As of the October 2018 remittance, the loan is current. Hyatt Place Houston transferred into special servicing in late 2017 and the servicer expects resolution in the near term for this loan. DBRS assumed a stressed cash flow scenario for both specially serviced loans to increase the probability of default; for additional information on the DBRS view on these loans, please see the loan commentary for both in the DBRS Viewpoint platform, for which information has been provided below.

Classes X-A, X-B, X-C, X-D and X-E are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation 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.

As part of this review, DBRS has provided updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- Prospectus ID#6 - Holiday Inn Baltimore Inner Harbor
-- Prospectus ID#24 - Tops Plaza
-- Prospectus ID#28 - Tidewater Cove
-- Prospectus ID#36 - Safeway – Vancouver
-- Prospectus ID#38 - Hyatt Place Houston
-- Prospectus ID#42 - Capital Plaza

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrs.com. The platform includes issuer and servicer data for the entire CMBS universe, as well as deal and loan-level commentary for all DBRS rated transactions.

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

The principal methodology is North American CMBS 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.

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.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

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