Tokyo, January 13, 2011 -- Moody's Japan K.K. has today placed JLOC37 Note's Class A1 through D2 and X Notes issued by Godo Kaisha JLOC37 under review for possible downgrade.
The notes will mature in January 2015.
JLOC37, effected in July 2007, represents the securitization of ten non-recourse loans. Five have been paid down in full so far, and the transaction is currently secured by the remaining five, of which four are backed by office, residential, and hotel properties and are under special servicing. The one performing loan is backed by an office building in Tokyo.
The current review has been prompted by Moody's concerns about the recovery from the properties when they are sold and the need to reconsider its recovery assumptions.
In its review, Moody's will re-assess -- and add further stress to -- its recovery assumptions for the properties, incorporating their operating status and the progress of special servicing.