Fitch Downgrades 2 Classes of JP Morgan Commercial Mortgage 2003-PM1

2008-08-27 00:37:03 -

- Fitch Ratings has downgraded two classes of JP Morgan Commercial Mortgage Securities Corp. pass-through certificates, series 2003-PM1 as follows:

--$4.3 million class N from 'B' to 'B-';

--$2.9 million class P from 'CCC' to 'CCC/DR1'.

In addition, Fitch has affirmed the following classes:

--$312.4 million class A1A at 'AAA';

--$40.1 million class A-2 at 'AAA';

--$82.6 million class A-3 at 'AAA';

--$282 million class A-4 at 'AAA';

--Interest-only class X-1 at 'AAA';

--Interest-only class X-2 at 'AAA';

--$33.2 million class B at 'AAA';

--$13 million class C at 'AAA';

--$27.5 million class D at 'AAA';

--$13 million class E at 'AA+';

--$15.9 million class F at 'AA-';

--$13 million class G at 'A';

--$18.8 million class H at 'BBB+';

--$15.9 million class J at 'BBB-';

--$7.2 million class K at 'BB+';

--$8.7 million class L at 'BB';

--$7.2 million class M at 'B+'.

Class A-1 has paid in full. Fitch does not rate the $14.7 million class NR certificates.

The downgrades are the result of expected losses on the four loans (2%) currently in special servicing as well as higher than expected losses on a loan disposed from the trust.

Two loans (1.6%) are secured by multifamily properties located in Fort Worth, TX and are controlled by MBS Cos., a property owner and operator that defaulted on a portfolio of multifamily properties in late 2007. Recent property valuations indicate that significant losses are possible upon liquidation. Fitch's analysis reflects the risk associated with these loans.

The third specially serviced loan (0.46%) is collateralized by an industrial warehouse located in Tustin, CA. The loan is 90+ days delinquent on debt service payments. The servicer is currently trying to establish contact with the operator. Losses are possible.

The final specially serviced loan (0.18%) is secured by a multifamily property in Springfield, IL. The loan has a history of delinquencies and the borrower is currently working with the special servicer to cure all defaults. Losses are possible.

The affirmations reflect scheduled amortization and defeasance since Fitch's last rating action. As of the August 2008 distribution date, the pool's aggregate certificate balance has decreased 21% to $913 million from $1.16 billion at issuance. Thirteen loans (21%), including the largest two loans in the transaction (11.6%), are fully defeased.

The majority of the non-defeased pool (55.6%) matures in 2013. The weighted average interest rate for these loans is 5.58%. The largest non-defeased loan in the pool (5.6%) is secured by a retail property in West Palm Beach, FL, has an interest rate of 6.20% and matures in October 2012. The servicer reported December 2007 Debt Service Coverage Ratio was 1.40 times.

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
Christopher Bushart, +1-212-908-0606 (New York)
Britt Johnson, +1-312-606-2341 (Chicago)
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