Fitch Ratings has taken various actions on 17 classes of J.P. Morgan Chase Commercial Mortgage Securities Trust 2008-C2, including downgrading nine of the classes.
The downgrades are the result of loss expectations on loans in special servicing, Fitch says, as well as the agency's prospective views regarding commercial real estate market value and cashflow declines.
Fitch forecasts potential losses of 14.6% for this transaction, should market conditions not recover.
Fitch analyzed the transaction and calculated expected losses by assuming cashflows on each of the properties decline 15% from year-end 2007 and property values decline 35% from issuance. These loss estimates were reviewed in more detail for loans representing 71% of the pool and, in certain cases, were revised based on additional information and/or property characteristics, Fitch says. Approximately 97% of the assumed losses were on loans reviewed in detail by Fitch.
SOURCE: Fitch Ratings