TEXT-Fitch downgrades 10 classes of JPMCC 2007-LDP10

Fri Jan 11, 2013 5:14pm EST

Jan 11 - Fitch Ratings has downgraded 10 classes and affirmed 22 classes of
J.P. Morgan Chase Commercial Mortgage Securities Trust (JPMCC) commercial
mortgage pass-through certificates series 2007-LDP10 due to increased loss
expectations on the specially serviced loans and further deterioration of loan
performance. A detailed list of rating actions follows at the end of this press
release.

KEY RATING DRIVERS

Fitch modeled losses of 20.4% of the remaining pool; expected losses on the
original pool balance total 20.1%, including 2.6% to date. Fitch has designated
93 loans (49.8%) as Fitch Loans of Concern, which includes 33 specially serviced
assets (21.9%).

As of the December 2012 distribution date, the pool's aggregate principal
balance has been reduced by 14.7% to $4.55 billion from $5.33 billion at
issuance. No loans have defeased since issuance. Interest shortfalls are
currently affecting classes A-JS through NR.

The largest contributor to expected losses is the specially-serviced One Skyline
Tower loan (4.5% of the pool), which is secured by eight office buildings in
Falls Church, VA. This loan transferred to special servicing in March 2012 for
imminent default. The sponsor, Vornado, cited the Base Realignment and Closure
statute (BRAC), as contributing to recent and upcoming vacancies at the
properties. In addition, the sponsor has indicated that there may be significant
capital required to re-tenant the properties. The pari passu loan is under a
forbearance agreement as of November 2012.

The next largest contributor to expected losses is the specially-serviced
StratREAL Industrial Portfolio II loan (3.3%), which is secured by a portfolio
of 10 industrial properties located in Tennessee, Ohio, and California. During
2010 and 2011, the portfolio lost several major tenants due to tenant lease
expiries and termination options. The loan was transferred to special servicing
in December 2012 for imminent default. The portfolio's combined occupancy is
67%; as such, the properties are not generating enough cash flow to support the
debt service.

The third largest contributor to expected losses is the specially-serviced
Solana loan (3.1%), which is secured by an office complex located in Westlake,
TX. The pari passu loan was transferred to special servicing in March 2009 for
imminent default and has since been modified. The reported occupancy is
approximately 67%. The latest reported appraisal from May 2012 indicates a value
significantly below the loan amount.

Fitch downgrades the following classes as indicated, and has assigned or revised
Recovery Estimates (REs):

--$359 million class A-M to 'Bsf' from 'BBBsf', Outlook Negative;
--$174.1 million class A-MS to 'Bsf' from 'BBBsf', Outlook Negative;
--$71.8 million class B to 'CCsf' from 'CCCsf', RE 0%;
--$34.8 million class B-S to 'CCsf' from 'CCCsf', RE 0%;
--$26.9 million class C to 'CCsf' from 'CCCsf', RE 0%;
--$13.1 million class C-S to 'CCsf' from 'CCCsf', RE 0%;
--$49.4 million class D to 'CCsf' from 'CCCsf', RE 0%;
--$23.9 million class D-S to 'CCsf' from 'CCCsf', RE 0%;
--$44.9 million class F to 'Csf' from 'CCsf', RE 0%%;
--$21.8 million class F-S to 'Csf' from 'CCsf', RE 0%%;

Fitch affirms the following classes and assigns or revises Rating Outlooks as
indicated:

--$231.7 million class A-2 at 'AAAsf', Outlook to Negative from Stable;
--$443.7 million class A-2S at 'AAAsf', Outlook to Negative from Stable;
--$83.7 million class A-2SFL at 'AAAsf', Outlook to Negative from Stable;
--$1.7 billion class A-3 at 'AAAsf', Outlook to Negative from Stable;
--$179.9 million class A-3S at 'AAAsf', Outlook to Negative from Stable;
--$421.4 million class A-1A at 'AAAsf', Outlook to Negative from Stable;
--$12.9 million class A-2SFX at 'AAAsf', Outlook to Negative from Stable.

Fitch affirms the following classes as indicated:

--$200.7 million class A-J at 'CCCsf', RE 0%;
--$145.8 million class A-JS at 'CCCsf', RE 0%;
--$100 million class A-JFL at 'CCCsf', RE 0%;
--$40.4 million class E at 'CCsf', RE 0%;
--$19.6 million class E-S at 'CCsf', RE 0%;
--$44.9 million class G at 'Csf', RE 0%;
--$21.8 million class G-S at 'Csf', RE 0%;
--$40.4 million class H at 'Csf', RE 0%;
--$19.6 million class H-S at 'Csf', RE 0%;

The class A-1 and A-1S certificates have paid in full. Classes J, K, L, M, N,
and P remain at 'Dsf'; RE 0% due to realized losses. Fitch does not rate the
class NR certificates. Fitch previously withdrew the rating on the interest-only
class X certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions
is available in the Dec. 18, 2012 report, 'U.S. Fixed-Rate Multiborrower CMBS
Surveillance and Re-REMIC Criteria', which is available at
'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec.
18, 2012).

Applicable Criteria and Related Research:
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
Global Structured Finance Rating Criteria
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.