TEXT-Fitch cuts JLOC XXVIII to 'Dsf'; drops ratings

(The following statement was released by the rating agency)

Oct 09 - Fitch Ratings has downgraded JLOC XXVIII Senior Trust's class D trust beneficiary interests (TBIs) and the TMK 1 mezzanine specified bonds (mezzanine SB) to 'Dsf' from 'Csf'. The ratings have simultaneously been withdrawn. The transaction was a Japanese multi-borrower type CMBS securitisation.

The downgrades follow the tranche default and write-down to zero of the remaining balance of the class D TBIs and the mezzanine SB at legal final maturity on 9 October 2012. Sales of properties backing the transaction have resulted in a partial redemption of the underlying bond and the remaining bond obligation was waived in October 2012. The class A to C TBIs have already been redeemed in full.

Fitch will no longer calculate the Recovery Estimate for the class D TBIs and the mezzanine SB following the withdrawal of the ratings.

This transaction was originally backed by specified bonds issued by two Tokutei Mokuteki Kaisha entities, which were backed by 567 properties. All properties were sold by mid-September 2012.

Fitch will no longer provide ratings or analytical coverage for this transaction.

((Bangalore Ratings Team, Hotline: +91 80 4135 5898, Bhanu.priya@thomsonreuters.com, Group id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: Bhanu.Priya.reuters.com@reuters.net))