Fitch Downgrades JPMorgan Chase’s 2006-CIBC15 Series

Fitch Ratings has downgraded, removed from Rating Watch Negative, and assigned Rating Outlooks to 14 classes of commercial mortgage pass-through certificates from J.P.Morgan Chase Commercial Mortgage Securities Corp. series 2006-CIBC15.

The downgrades are the result of loss expectations on specially serviced loans, as well as Fitch's prospective views regarding commercial real estate market value and cashflow declines. Potential losses for the transaction could reach as high as 10.1%, should market conditions not recover, Fitch says.

The rating actions are based on losses of 7.5%, including 100% of the term losses and 25% of the losses anticipated to occur at maturity; the 7.5% recognizes all of the losses anticipated in the next five years. Given the significant term to maturity, Fitch's actions only account for 25% of the losses associated with maturities beyond five years.

The bonds with Negative Outlooks indicate classes that may be downgraded in the future should full potential losses be realized, Fitch says.

SOURCE: Fitch Ratings


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