Oct 09 -
-- JLOC XXVIII is a property sales-type CMBS transaction that Morgan
Stanley Japan Securities arranged.
-- The remaining senior specified bond that secures the class D senior
trust certificates has been impaired and, as a result, the class D senior
trust certificates have also incurred a loss.
-- Harajuku Holding TMK's series 4-2 mezzanine specified bond has also
-- We have lowered to 'D (sf)' our ratings on the class D senior trust
certificates and on the series 4-2 mezzanine specified bond.
Standard & Poor's Ratings Services today said that it has lowered to 'D (sf)' from 'CCC
(sf)' its ratings on the class D senior trust certificates and on Harajuku Holding TMK's series
4-2 floating-rate mezzanine specified bond issued under the JLOC XXVIII
transaction (see list below). The class A and B senior trust certificates and
Nakano Holding TMK's series 3-2 floating-rate mezzanine specified bond have
already fully redeemed, and the class C senior trust certificates also fully
redeemed on the payment date in October 2012.
Of the two senior specified bonds that originally backed the senior trust
certificates, a single senior specified bond (Harajuku Holding TMK's senior
specified bond) remains. Although the sales of all the properties backing
Harajuku Holding TMK's senior specified bond and series 4-2 floating-rate
mezzanine specified bond have been completed, the outstanding principal on
these two specified bonds exceeds the amount of proceeds collected through the
property sales. We today downgraded class D and the series 4-2 mezzanine
specified bond to 'D (sf)' because we have confirmed that these two classes
JLOC XXVIII is a property sales-type commercial mortgage-backed securities
(CMBS) transaction that Morgan Stanley Japan Securities Co. Ltd. arranged. At
the outset of the transaction, two senior specified bonds secured the senior
trust certificates, and 567 real estate properties backed the senior specified
bonds and mezzanine specified bonds.
RELATED CRITERIA AND RESEARCH
"CMBS Global Property Evaluation Methodology," Sept. 5, 2012
"Japanese Structured Finance Scenario And Sensitivity Analysis: The Effects Of
Major Macroeconomic Factors," April 6, 2012
"Methodology For Japanese CMBS Loan Analysis," March 12, 2007
JLOC XXVIII Senior Trust Certificates
JPY88.9 billion trust certificates due October 2012
Class To From Initial issue amount
D D (sf) CCC (sf) JPY7.2 bil.
JLOC XXVIII Mezzanine Specified Bonds
Harajuku Holding TMK Series 4-2 JPY3.6 billion floating-rate mezzanine specified
bond due October 2012
To From Initial issue amount
D (sf) CCC (sf) JPY3.6 bil.