2009-02-25 19:04:02 -
Fitch Ratings downgrades two classes of J.P. Morgan Commercial Mortgage Finance Corp.'s mortgage pass-through certificates, series 1998-C6, as follows:
--$19.9 million class G to 'CCC/DR1' from 'B-';
--$2.4 million class H to 'C/DR6' from 'C/DR5'.
Additionally, Fitch affirms and revises the Outlook for the following class:
--$39.8 million class F at 'BBB-'; Outlook to Negative from Stable.
Fitch also affirms the following with a Stable Outlook:
--Interest-only class X at 'AAA';
--$1.3 million class C at 'AAA';
--$47.8 million class D at 'AAA';
--$15.9
million class E at 'AAA'.
Classes A1, A2, A3 and B have paid in full.
The downgrades and Negative Outlook are due to the transfer of the second largest loan (20.3%) to special servicing on Feb. 18, 2009, and also due to the concentrated nature of the pool.
The affirmations and Stable Outlooks are warranted due to increased credit enhancement since issuance as a result of paydown. As of the February 2009 distribution date, the pool's aggregate balance has decreased 84% to $127.1 million from $796.4 million at issuance.
The recently transferred specially serviced loan is secured by a retail plaza in Deptford, NJ. The loan transferred to special servicing for imminent default and the borrower and special servicer are currently discussing workout options. Occupancy at the property as of September 2008 was 56%. The property had a large space vacated by Circuit City. Another space was vacated by Sam's Club; however, they plan to continue paying rent through rent expiration in August 2010. Fitch will continue to monitor this loan.
Of the original four shadow-rated loans in the pool, three have paid in full and one (36.6%), which is the largest remaining loan, maintains its investment grade shadow-rating. The Crystal Gateway Marriott is a 697-room full-service hotel in Arlington, VA. The servicer reported the September 2008 occupancy at 76.5%, average daily rate (ADR) at $184 and revenue per available room (RevPAR) at $141 compared to year-end (YE) 2007 occupancy of 79.4%, ADR of $179 and RevPAR of $142.
Loan maturities range from 2012 to 2018 with the majority of the loans scheduled to mature in 2017 (66.3%). The weighted average interest rate for the remaining loans is 7.66%.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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 and procedures are also available from the 'Code of Conduct' section of this site.
Fitch Ratings, Chicago
Elizabeth Elser, +1-312-606-2319
Britt Johnson, +1-312-606-2341
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com 
