(The following statement was released by the rating agency)
Oct 10 - Fitch Ratings has affirmed the ratings of JLOC 38, LLCdue April 2016. The transaction is a Japanese multi-borrower type CMBSsecuritisation. The rating actions are as follows:
JPY3.2bn* Class C notes affirmed at 'BBBsf'; Outlook Stable
JPY3.5bn* Class D notes affirmed at 'Dsf'; Recovery Estimate revised to 85% from60%
*as of 9 October 2012
The rating of the class C notes reflects Fitch's expectations of full redemptionon the next payment date in October 2012. Since the previous rating action on 27October 2011, six underlying loans have been paid in full and workouts on fourdefaulted loans have been completed. The repayment proceeds from theseunderlying loans were used to pay down the notes principal sequentially, leadingto the class A and B notes being redeemed in full in January and April 2012,respectively.
The Recovery Estimate for class D was increased as repayment proceeds since theprevious rating action were larger than expected. Fitch's valuation on theremaining properties remains unchanged.
As the class D notes, rated 'Dsf', will be the only remaining tranche after thenext payment date, the rating will be withdrawn within 11 months of the nextpayment date.
At closing in September 2007, the notes were ultimately secured by 34 loanscollateralised by 105 properties. The transaction is currently secured by threeunderlying loans backed by a total of four properties.