Fitch to Rate JPMBB 2015-C29 Commercial Mortgage Securities Trust

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has issued a presale report on JPMBB Commercial Mortgage Securities Trust 2015 C29 commercial mortgage pass-through certificates.

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

--$49,025,000 class A-1 'AAAsf'; Outlook Stable;

--$212,993,000 class A-2 'AAAsf'; Outlook Stable;

--$60,000,000 class A-3A1 'AAAsf'; Outlook Stable;

--$75,000,000b class A-3A2 'AAAsf'; Outlook Stable;

--$222,921,000 class A-4 'AAAsf'; Outlook Stable;

--$69,203,000 class A-SB 'AAAsf'; Outlook Stable;

--$753,133,000a class X-A 'AAAsf'; Outlook Stable;

--$54,147,000a class X-B 'AA-sf'; Outlook Stable;

--$63,991,000 class A-S 'AAAsf'; Outlook Stable;

--$54,147,000 class B 'AA-sf'; Outlook Stable;

--$44,302,000 class C 'A-sf'; Outlook Stable;

--$162,440,000 class EC 'A-sf'; Outlook Stable;

--$52,917,000 class D 'BBB-sf'; Outlook Stable;

--$44,302,000ab class X-C 'A-sf'; Outlook Stable;

--$52,917,000ab class X-D 'BBB-sf'; Outlook Stable;

--$20,920,000ab class X-E 'BBsf'; Outlook Stable;

--$11,075,000ab class X-F 'Bsf'; Outlook Stable;

--$20,920,000b class E 'BBsf'; Outlook Stable;

--$11,075,000b class F 'Bsf'; Outlook Stable.

(a) Notional amount and interest-only.

(b) Privately placed and pursuant to Rule 144A.

The expected ratings are based on information provided by the issuer as of May 29, 2015. Fitch does not expect to rate the $47,994,178ab X-NR and $47,994,178b NR classes.

The certificates represent the beneficial ownership interest in the trust, primary assets of which are 63 loans secured by 85 commercial properties having an aggregate principal balance of approximately $984.5 million as of the cutoff date. The loans were contributed to the trust by JPMorgan Chase Bank, N.A., Barclays Bank plc, RAIT Funding, LLC, Redwood Commercial Mortgage Corporation, and Starwood Mortgage Funding II, LLC.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 65.6% of the properties by balance, cash flow analysis of 73.8%, and asset summary reviews on 86.2% of the pool.

KEY RATING DRIVERS

Fitch Leverage: The transaction has lower leverage than other recent Fitch-rated fixed-rate multiborrower transactions. The pool's Fitch DSCR of 1.22x is greater than both the YTD 2015 average of 1.18x and the 2014 average of 1.19x, and the pool's Fitch LTV of 108.0% is lower than both the YTD 2015 average of 110.4% and the 2014 average of 106.2%.

Pool Concentration: The largest 10 loans in the transaction account for 43.2% of the pool by balance. This is lower than the YTD 2015 average of 48.5% and lower than the 2014 average of 50.5%. The pool's below-average concentration resulted in a loan concentration index (LCI) of 292, which was lower than the YTD and 2014 averages of 387 and 331, respectively. Two of the six largest loans (9.25% of the pool) are secured by properties located in Houston.

Amortization: The pool is scheduled to amortize by 13.9% of the initial pool balance prior to maturity, which is greater than the 2014 average of 12.0%. Six loans (17.5%) are full-term interest-only and 33 loans (49.12%) are partial interest-only. One loan (1.54%) is fully amortizing. The remaining 23 loans (31.8%) are amortizing balloon loans with loan terms of five to 10 years.

RATING SENSITIVITIES

For this transaction, Fitch's net cash flow (NCF) was 13.0% below the most recent net operating income (NOI; for properties for which a recent NOI was provided, excluding properties that were stabilizing during this period). Unanticipated further declines in property-level NCF could result in higher defaults and loss severities on defaulted loans, and could result in potential rating actions on the certificates.

Fitch evaluated the sensitivity of the ratings assigned to JPMBB 2015-C29 certificates and found that the transaction displays slightly average sensitivity to further declines in NCF. In a scenario in which NCF declined a further 20% from Fitch's NCF, a downgrade of the senior 'AAAsf' certificates to 'A-sf' could result. In a more severe scenario, in which NCF declined a further 30% from Fitch's NCF, a downgrade of the senior 'AAAsf' certificates to 'BBB-sf' could result. The presale report includes a detailed explanation of additional stresses and sensitivities on pages 10 - 11

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Additional information is available at www.fitchratings.com.

JPMBB Commercial Mortgage Securities Trust 2015-C29

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866306

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Analyzing Multiborrower U.S. and Canadian Commercial Mortgage Transactions (pub. 28 May 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865499

Global Structured Finance Rating Criteria (pub. 31 Mar 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

Rating Criteria for U.S. Commercial Mortgage Servicers (pub. 14 Feb 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735382

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985558

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150529005776/en/

Fitch Ratings
Primary Analyst
Tara Sweeney
Senior Director
+1 212-908-0347
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Derek Shimeck
Analyst
+1 312-368-3192
or
Committee Chairperson
Eric Rothfeld
Managing Director
+1 212-908-0638
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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