S&P Lowers Ratings On Chase CMBS Offerings

http://www.standardandpoors.com][u] Standard & Poor's (S&P) Ratings Services [/u][/link] has lowered its ratings on 19 classes of commercial mortgage-backed securities (CMBS) from JPMorgan Chase Commercial Mortgage Securities Trust 2007-C1 and removed them from its CreditWatch with negative implications. ‘The downgrades follow our analysis of the transaction using our recently released U.S. conduit and fusion CMBS criteria, which was the primary driver of the rating actions,’ according to a company statement. ‘Our analysis included a review of the credit characteristics of all the loans in the pool. Using servicer-provided financial information, we calculated an adjusted debt service coverage (DSC) of 1.21x and a loan-to-value ratio (LTV) of 113.4 percent. We further stressed the loans' cashflows under our 'AAA' scenario to yield a weighted average DSC of 0.86x and an LTV of 154.7 percent. The implied defaults and loss severity under the 'AAA' scenario were 72.1 percent and 41.2 percent, respectively. The lowered ratings on the mezzanine and subordinate classes also reflect our expectation that credit support will erode when the two specially serviced assets are resolved.’ However, S&P also affirmed its ratings on five other classes from the same transaction. The affirmed rates were based on Chase's interest-only certificates. SOURCE: Standard & Poor's Ratings Ser


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