Fitch Ratings has upgraded two classes, downgraded three classes and affirmed four classes of J.P. Morgan Chase Commercial Mortgage Securities Corp. (JPMCC) commercial mortgage pass-through certificates series 2003-PM1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades to classes F and G are due to the increase in subordination levels and the ultimate resolution of the Palm Beach Mall loan. The classes will continue to benefit from amortization and continued paydown, including 38.3% in fully amortizing loans and defeased collateral (21.1% of the pool or $6.9 million). The average Fitch Loan to Value (LTV) ratio is low at 47.3%. The transaction has experienced $79.1 million (6.8% of the original pool balance) in realized losses to date.

As of the December 2015 distribution date, the pool's aggregate principal balance has been reduced by 97.2% to $32.7 million from $1.16 billion at issuance. There are 15 loans remaining in the pool including one specially serviced loan. Interest shortfalls are currently affecting classes F through NR.

The Palm Beach Mall asset was sold in 2011, but the special servicer was in litigation with the borrower. The final proceeds were distributed in November 2015, which resulted in losses to the trust; losses were in the line with Fitch modeled losses.

The largest loan (29.3% of the pool) is secured by a 107,000 square foot, single tenant office property located in Yardley, PA. The property is fully leased by MediMedia USA, Inc. through Dec. 31, 2017. The servicer-reported debt service coverage ratio (DSCR) has remained above 2.0x for several years. The loan has a Fitch LTV ratio below 50%.

The specially serviced loan (6.9% of the pool) is secured by a 136-unit multifamily property located in Oklahoma City, OK. The loan transferred to special servicing in June 2015 due to imminent default. As of year-end 2014, the servicer-reported occupancy and DSCR were 97% and 1.0x respectively. The special servicer expects the loan will be returned back to the master servicer subsequent to the billing and settling of certain expenses.

RATING SENSITIVITIES

The Stable outlooks for classes F and G reflect the expectation of continued pool amortization, defeased collateral of which $1.7 million and $5.2 million matures in 2018 and 2023 respectively, and the overall pool's maturity schedule (63.5% matures in 2018, 4.2% in 2022 and 32.3% in 2023). Although credit enhancement remains high relative to the rating category for these classes, upgrades were limited due to the transaction's concentration (15 loans remain), current interest shortfalls, and tertiary market locations of the remaining collateral.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has upgraded the following classes and assigns outlooks as indicated:

--$13.6 million class F to 'Asf' from 'CCCsf'; Outlook Stable assigned;

--$13 million class G to 'Bsf' from 'Csf'; Outlook Stable assigned.

Fitch has downgraded the following class as indicated:

--$6.1 million class H to 'Dsf' from 'Csf'; RE 0%;

--$0 class J to 'Dsf' from 'Csf'; RE 0%;

--$0 class K to 'Dsf' from 'Csf'; RE 0%.

Fitch affirms the following classes:

--$0 class L at 'Dsf'; RE 0%;

--$0 class M at 'Dsf'; RE 0%;

--$0 class N at 'Dsf'; RE 0%;

--$0 class P at 'Dsf'; RE 0%.

Classes A-1 through E have been repaid in full. Fitch does not rate class NR. Fitch previously withdrew the ratings on the interest-only class X-1 and X-2 certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=997597

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=997597

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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