Fitch Ratings has downgraded two classes and affirmed 14 classes of J. P. Morgan Chase Commercial Mortgage Securities Corp. 2004-PNC1 commercial mortgage pass-through certificates.
The downgrades are due to an increase in expected losses associated with loans currently in special servicing, as well as losses for loans with cashflow declines that are no longer sufficient to meet debt service.
As of the February distribution date, the pool's aggregate principal balance has been paid down by 23.6% to $838.9 million from approximately $1.1 billion at issuance. Sixteen loans (25.4%) have defeased since issuance. Losses incurred to date of approximately $27.3 million (2.5% of the original transaction balance) have fully depleted classes M through NR and a portion of class L, Fitch says.
Fitch has designated 17 loans as Fitch Loans of Concern, including two specially serviced loans.
The largest contributor to Fitch's expected losses is secured by a 177,968 square-foot office property located in Melville, N.Y. The loan (2.8% of the outstanding pool) is currently with the special servicer.
SOURCE: Fitch Ratings
