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Rating Action:

Moody's Upgrades One and Affirms One Class of JPMC 1999-C8

10 Nov 2016

Approximately $3.6 Million of Structured Securities Affected

New York, November 10, 2016 -- Moody's Investors Service has upgraded the rating on one class and affirmed the rating on one class in J.P. Morgan Commercial Mortgage Finance Corp., Mortgage Pass-Through Certificates, Series 1999-C8 as follows:

Cl. H, Upgraded to Ca (sf); previously on Jan 28, 2016 Affirmed C (sf)

Cl. X, Affirmed Caa3 (sf); previously on Jan 28, 2016 Affirmed Caa3 (sf)

RATINGS RATIONALE

The rating on Class H was upgraded to be consistent with Moody's anticipated plus realized losses. The class has already realized a 46% expected loss from previously liquidated loans.

The rating on the IO class, Class X, was affirmed based on the credit performance of the referenced class.

Moody's does not anticipate losses from the remaining collateral in the current environment. However, over the remaining life of the transaction, losses may emerge from macro stresses to the environment and changes in collateral performance. Our ratings reflect the potential for future losses under varying levels of stress. Moody's base expected loss plus realized losses is now 7.5% of the original pooled balance, the same as at the last review. Moody's provides a current list of base expected losses for conduit and fusion CMBS transactions on moodys.com at http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF215255.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS:

The performance expectations for a given variable indicate Moody's forward-looking view of the likely range of performance over the medium term. Performance that falls outside the given range can indicate that the collateral's credit quality is stronger or weaker than Moody's had previously expected.

Factors that could lead to an upgrade of the ratings include a significant amount of loan paydowns or amortization, an increase in the pool's share of defeasance or an improvement in pool performance.

Factors that could lead to a downgrade of the ratings include a decline in the performance of the pool, loan concentration, an increase in realized and expected losses from specially serviced and troubled loans or interest shortfalls.

METHODOLOGY UNDERLYING THE RATING ACTION

The principal methodology used in these ratings was "Moody's Approach to Rating Large Loan and Single Asset/Single Borrower CMBS" published in October 2015. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

DESCRIPTION OF MODELS USED

Moody's analysis used the excel-based Large Loan Model. The large loan model derives credit enhancement levels based on an aggregation of adjusted loan-level proceeds derived from Moody's loan-level LTV ratios. Major adjustments to determining proceeds include leverage, loan structure and property type. Moody's also further adjusts these aggregated proceeds for any pooling benefits associated with loan level diversity and other concentrations and correlations.

DEAL PERFORMANCE

As of the October 17, 2016 distribution date, the transaction's aggregate certificate balance has decreased by 99% to $3.6 million from $731.5 million at securitization. The certificates are collateralized by five remaining mortgage loans ranging in size from 9.2% to 38% of the pool.

Two loans, constituting 47% of the pool, are on the master servicer's watchlist. The watchlist includes loans that meet certain portfolio review guidelines established as part of the CRE Finance Council (CREFC) monthly reporting package. As part of Moody's ongoing monitoring of a transaction, the agency reviews the watchlist to assess which loans have material issues that could affect performance.

Sixteen loans have been liquidated from the pool, resulting in an aggregate realized loss of $54.9 million (for an average loss severity of 47%). There are currently no loans in special servicing.

Moody's received full year 2015 operating results for 91% of the pool. Moody's net cash flow (NCF) reflects a weighted average haircut of 38% to the most recently available net operating income (NOI). Moody's value reflects a weighted average capitalization rate of 11.4%.

The top three loans represent 76% of the pool balance. The largest loan is the Ridge Terrace Heath Care Ctr. Loan ($1.4 million -- 38% of the pool), which is secured by a 120-bed heath care center located in Lantana, Florida. The loan is on the servicer's watchlist due to low DSCR. Performance has been very weak due to a significant increase in operating expenses. The property's valuation is based on a floor value. The loan is fully amortizing and has amortized 74% since securitization. Moody's LTV is 88%, compared to 108% at last review.

The second largest loan is the Plaza De Las Palmas Loan ($762,949 -- 21% of the pool), which is secured by a 47,000 SF retail property in El Cajon, California. As of December 2015, the property was 85% leased, compared to 79% at last review. The loan is fully amortizing and has amortized 83% since securitization. Moody's LTV and stressed DSCR are 12% and >4.00X, respectively, compared to 16% and >4.00X at the last review.

The third largest loan is the Arroyo Grande Mini Storage Loan ($626,966 -- 17% of the pool), which is secured by a 74,800 SF self-storage facility in Arroyo Grande, California. The property consists of 549 storage units. As of June 2016, the property was 99% leased, consistent with the prior three years. The loan is fully amortizing and has amortized 72% since securitization. Performance has improved annually since 2013. Moody's LTV and stressed DSCR are 10% and >4.00X, respectively, compared to 14% and >4.00X at the last review.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions of the disclosure form.

The analysis includes an assessment of collateral characteristics and performance to determine the expected collateral loss or a range of expected collateral losses or cash flows to the rated instruments. As a second step, Moody's estimates expected collateral losses or cash flows using a quantitative tool that takes into account credit enhancement, loss allocation and other structural features, to derive the expected loss for each rated instrument.

Moody's did not use any stress scenario simulations in its analysis.

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.DISCLOSURES

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Rhett Terrell
Associate Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Matthew Halpern
AVP-Analyst/Manager
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

No Related Data.
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MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

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