Approximately $218.4 Million of Structured Securities Affected
New York, February 16, 2011 -- Moody's Investors Service (Moody's) placed 13 classes of J.P.
Morgan Chase Commercial Mortgage Trust, Commercial Mortgage Pass-Through
Certificates, Series 2005-CIBC11 as follows:
Cl. B, Aa2 (sf) Placed Under Review for Possible Downgrade;
previously on May 25, 2005 Definitive Rating Assigned Aa2 (sf)
Cl. C, Aa3 (sf) Placed Under Review for Possible Downgrade;
previously on May 25, 2005 Definitive Rating Assigned Aa3 (sf)
Cl. D, A2 (sf) Placed Under Review for Possible Downgrade;
previously on May 25, 2005 Definitive Rating Assigned A2 (sf)
Cl. E, A3 (sf) Placed Under Review for Possible Downgrade;
previously on May 25, 2005 Definitive Rating Assigned A3 (sf)
Cl. F, Baa3 (sf) Placed Under Review for Possible Downgrade;
previously on Jun 17, 2009 Downgraded to Baa3 (sf)
Cl. G, Ba1 (sf) Placed Under Review for Possible Downgrade;
previously on Jun 17, 2009 Downgraded to Ba1 (sf)
Cl. H, B1 (sf) Placed Under Review for Possible Downgrade;
previously on Jun 17, 2009 Downgraded to B1 (sf)
Cl. J, B2 (sf) Placed Under Review for Possible Downgrade;
previously on Jun 17, 2009 Downgraded to B2 (sf)
Cl. K, B3 (sf) Placed Under Review for Possible Downgrade;
previously on Jun 17, 2009 Downgraded to B3 (sf)
Cl. L, Caa1 (sf) Placed Under Review for Possible Downgrade;
previously on Jun 17, 2009 Downgraded to Caa1 (sf)
Cl. M, Caa2 (sf) Placed Under Review for Possible Downgrade;
previously on Jun 17, 2009 Downgraded to Caa2 (sf)
Cl. N, Caa3 (sf) Placed Under Review for Possible Downgrade;
previously on Jun 17, 2009 Downgraded to Caa3 (sf)
Cl. P, Caa3 (sf) Placed Under Review for Possible Downgrade;
previously on Jun 17, 2009 Downgraded to Caa3 (sf)
RATINGS RATIONALE
The classes were placed on review due to higher expected losses for the
pool resulting from realized and anticipated losses from specially serviced
loans and troubled loans.
The rating action is a result of Moody's on-going surveillance
of commercial mortgage backed securities (CMBS) transactions. Moody's
monitors transactions on a monthly basis through two sets of quantitative
tools -- MOST® (Moody's Surveillance Trends) and CMM
(Commercial Mortgage Metrics) on Trepp -- and on a periodic
basis through a comprehensive review. Moody's prior full review
is summarized in a press release dated July 17, 2009. Please
see the ratings tab on the issuer / entity page on moodys.com for
the last rating action and the ratings history.
DEAL AND PERFORMANCE SUMMARY
As of the January 14, 2011 distribution date, the transaction's
aggregate certificate balance has decreased by 17% to $1.49
Billion from $1.8 billion at securitization. The
Certificates are collateralized by 135 mortgage loans ranging in size
from less than 1% to 8% of the pool, with the top
ten loans representing 60% of the pool. Seven loans,
representing 4% of the pool, have defeased and are collateralized
with U.S. Government securities.
Thirty-one loans, representing 21% of the pool,
are on the master servicer's watchlist. The watchlist includes
loans which meet certain portfolio review guidelines established as part
of the CRE Finance Council (CREFC) monthly reporting package. As
part of our ongoing monitoring of a transaction, Moody's reviews
the watchlist to assess which loans have material issues that could impact
performance.
Nine loans have been liquidated from the pool since securitization,
resulting in an aggregate $15.5 million loss (43%
loss severity on average). At last review the pool had only realized
at $1.1 million loss. Currently, there are
14 loans, representing 7% of the pool in special servicing.
The master servicer has recognized appraisal reductions totaling $16.2
million for nine of the the specially serviced loans..
Based on the most recent remittance statement, Classes H through
NR have experienced cumulative interest shortfalls totaling $1.84
million. Moody's anticipates that the pool will continue
to experience interest shortfalls because of the high exposure to the
specially serviced loans. Interest shortfalls are caused by special
servicing fees, including workout and liquidation fees, appraisal
subordinate entitlements reductions (ASERs) and extraordinary trust expenses.
Moody's review will focus on potential losses from the specially
serviced and troubled loans and the performance of the overall pool.
The principal methodologies used in this rating was "CMBS:
Moody's Approach to Rating Fusion Transactions" published in April
2005. Other methodologies and factors that may have been considered
in the process of rating this issuer can also be found on Moody's website.
In addition, Moody's publishes a weekly summary of structured finance
credit, ratings and methodologies, available to all registered
users of our website, at www.moodys.com/SFQuickCheck
New York
Juan Acosta
Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Sandra Ruffin
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's Investors Service
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's Places 13 CMBS Classes of JPMCC 2005-CIBC11 on Review for Possible Downgrade