Fitch Ratings has affirmed one class of JP Morgan Commercial Mortgage
Finance Corp., commercial mortgage pass-through certificates, series
1997-C5 (JPM 1997-C5) as follows:
--$8.6 million class F at 'AAsf'; Outlook Stable.
The affirmation reflects continued stable pool performance. As of the
June 2012 distribution date, the pool's certificate balance has
decreased by 95.6% (to $45.2 million from $1.03 billion at issuance), of
which 95.1% were due to paydowns and 0.5% were due to realized losses.
The pool is concentrated with 16 loans remaining. Fitch has designated
11 loans as Fitch Loans of Concern (48.7%), which includes three
specially serviced loans (5.5%).
Fitch stressed the cash flow of the remaining non-defeased loans by
applying a 5% reduction to 2010 or 2011 fiscal year-end net-operating
income, and applying an adjusted market cap rate between 8.1% and 11% to
determine value.
The non-defeased and non-specially-serviced loans also underwent a
refinance test by applying an 8% interest rate and 30-year amortization
schedule based on the stressed cash flow. One loan is not expected to
pay off at maturity and incurs a loss when compared to Fitch's stressed
value. The loan is secured by a 58 room, limited-service hotel property
located in Williamsburg, VA. Property performance has been weak and the
property has been reporting negative NOI since 2008. The overall
occupancy, average daily rate, and revenue per available room were
32.5%, $57.50, and $18.68, respectively.
Classes A1, A2, A3, B, and C have paid in full. Fitch does not rate
classes D, E, G, H, NR-I, and NR-P.
Fitch had previously withdrawn the rating on the interest-only class X.
(For additional information on the withdrawal of the rating on the
interest-only class, see 'Fitch Revises Practice for Rating IO &
Pre-Payment Related Structured Finance Securities', dated June 23, 2010.)
Additional information is available at 'www.fitchratings.com'.
The ratings above were solicited by, or on behalf of, the issuer, and
therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec.
21, 2011).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=662869
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DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
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IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
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