June 21, 2012 / 6:55 PM / 6 years ago

TEXT-Fitch affirms JP Morgan Commercial Mortgage 1997-C5

June 21 - Fitch Ratings has affirmed one class of JP Morgan Commercial
Mortgage Finance Corp., commercial mortgage pass-through certificates, series
1997-C5 (JPM 1997-C5) as follows:

--$8.6 million class F at 'AAsf'; Outlook Stable.

The affirmation reflects continued stable pool performance. As of the June 2012
distribution date, the pool's certificate balance has decreased by 95.6% (to
$45.2 million from $1.03 billion at issuance), of which 95.1% were due to
paydowns and 0.5% were due to realized losses. The pool is concentrated with 16
loans remaining. Fitch has designated 11 loans as Fitch Loans of Concern
(48.7%), which includes three specially serviced loans (5.5%).

Fitch stressed the cash flow of the remaining non-defeased loans by applying a
5% reduction to 2010 or 2011 fiscal year-end net-operating income, and applying
an adjusted market cap rate between 8.1% and 11% to determine value.

The non-defeased and non-specially-serviced loans also underwent a refinance
test by applying an 8% interest rate and 30-year amortization schedule based on
the stressed cash flow. One loan is not expected to pay off at maturity and
incurs a loss when compared to Fitch's stressed value. The loan is secured by a
58 room, limited-service hotel property located in Williamsburg, VA. Property
performance has been weak and the property has been reporting negative NOI since
2008. The overall occupancy, average daily rate, and revenue per available room
were 32.5%, $57.50, and $18.68, respectively.

Classes A1, A2, A3, B, and C have paid in full. Fitch does not rate classes D,
E, G, H, NR-I, and NR-P.

Fitch had previously withdrawn the rating on the interest-only class X. (For
additional information on the withdrawal of the rating on the interest-only
class, see 'Fitch Revises Practice for Rating IO & Pre-Payment Related
Structured Finance Securities', dated June 23, 2010.)

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);
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec. 21,

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
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