Fitch Ratings has affirmed all classes of J. P. Morgan Chase Commercial Mortgage Securities Trust, commercial mortgage pass-through certificates, series 2010-C2 (JPMCC 2010-C2). A full list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations reflect increasing credit enhancement and pool concentrations. Fitch modeled losses of 3.2% of the remaining pool; expected losses based on the original pool balance are 2.4%. The pool has experienced no realized losses to date. The pool has no specially serviced, delinquent, or defeased loans since issuance. Fitch has designated seven loans (28.7% of pool) as Fitch Loans of Concern (LOCs).

The pool has 21 loans remaining, compared to 25 loans at the last rating action and 30 loans at issuance. With loan payoffs, the retail concentration has grown to 70% of the pool. Single-tenanted loans account for 18% of pool. Loan maturities are concentrated in 2017 (24% of pool) and 2020 (76%). Fitch applied additional stresses to the LOCs in its base case analysis to factor in concerns over performance and adverse selection as the pool becomes increasingly concentrated.

As of the June 2016 distribution date, the pool's aggregate principal balance has been paid down by 23.8% to $838.7 million from $1.1 billion at issuance. The entire pool reported 2015 financials. Based on financial statements for the remaining loans in the pool, the overall net operating income (NOI) improved 28% since issuance and 12% over 2014 reported financials.

The largest loan, Arizona Mills (19.2% of pool), is secured by a 1.25 million square foot (sf) outlet mall located in Tempe, AZ. As of the March 2016 rent roll, property occupancy has declined to 87.5% from 91.1% at year-end (YE) 2015, 92.8% one year earlier, and 95.8% two years earlier. The recent decline in occupancy since YE 2015 was due to three tenants totaling 4% of net rentable area (NRA) vacating at their scheduled January 2016 lease expiration.

The prior largest tenant, JC Penney Outlet, closed its store at the property at the end of 2013. This space has since been re-tenanted by At Home, a home decor and furniture superstore, which opened in July 2014. Off Saks Fifth Avenue terminated its lease during first quarter 2015, which was prior to its scheduled January 2016 lease expiration. Sports Authority, which had already downsized its space by half, moved into this former Off Saks Fifth Avenue space; however, Sports Authority closed its store in May 2015, which was prior to its scheduled January 2026 lease expiration. In April 2016, Legoland Discovery Center took over this former Sports Authority space on a 15-year lease, improving occupancy to 90%.

The largest Fitch LOC, Shops at Sunset Place (8.3%), is secured by the leasehold on a 522,767 sf open-air lifestyle retail center located in Miami, FL. The loan was assumed in June 2015 by Federal Realty Investment Trust from a joint venture between Simon Property Group and Institutional Mall Investors, LLC.

Both property occupancy and NOI have continued to decline and remain below Fitch's expectations at issuance. As of the March 2016 rent roll, the property was 79.7% occupied, compared to 82.9% at YE 2015, 79.8% at YE 2014, 77.5% at YE 2013, 77.2% at YE 2012, 88.7% at YE 2011, and 91.5% at YE 2010.

Property NOI for 2015 declined 8.4% from 2014 and is 7.5% below Fitch's stressed NOI at issuance. In-line sales at the property have also been declining. For 2015, in-line sales for stores less than 10,000 sf were $250 per sf (psf) compared to $275 psf in 2014 and $302 psf at issuance. In-line sales for stores greater than 10,000 sf were $184 psf in 2015, $199 psf in 2014, and $218 psf at issuance. Near-term lease rollover includes 5% in 2016 and 11% in 2017.

The second largest Fitch LOC, Greece Ridge Center (8.2%), is secured by 1.06 million sf of a 1.61 million sf super-regional mall located in Greece, NY (Rochester MSA). As of the March 2016 rent roll, the overall mall was 77.9% occupied, compared to 78.9% at YE 2015, 79.3% at YE 2014, 78.3% at YE 2013, and 80.1% at YE 2012; however, occupancy has declined from nearly 90% in 2010 and 2011. One of the initial non-collateral anchors, Bon Ton, closed its store at the property in 2012. The NOI in 2015 was consistent with 2014, down slightly by 0.5%, but is 9.3% below Fitch's stressed NOI at issuance. Near-term lease rollover includes 4% in 2016 and 9% in 2017. In the most recent sales report provided to Fitch for this rating action, only about 50% of the collateral NRA had sales figures reported. For these tenants with reported sales, the average was approximately $225 psf, which is significantly below the $331 psf reported at issuance.

RATING SENSITIVITIES

The Stable Outlooks on classes A-1 through E reflect increasing credit enhancement and expected continued paydown. The Negative Outlooks on classes F through H reflect the pool's retail concentration (70% of pool) and concerns over property performance, tenancy and/or sales trends. Fitch will continue to monitor this concentration as well as the performance of the Fitch LOCs. If performance deteriorates, negative rating actions are possible.

DUE DILIGENCE USAGE

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

Fitch has affirmed and revised Rating Outlooks on the following classes as indicated:

--$4.1 million class A-1 at 'AAAsf'; Outlook Stable;

--$243.1 million class A-2 at 'AAAsf'; Outlook Stable;

--$390.5 million class A-3 at 'AAAsf'; Outlook Stable;

--Interest-only class X-A at 'AAAsf'; Outlook Stable;

--$37.2 million class B at 'AAsf'; Outlook Stable;

--$53.7 million class C at 'Asf'; Outlook Stable;

--$33 million class D at 'BBB+sf'; Outlook Stable;

--$22 million class E at 'BBB-sf'; Outlook Stable;

--$16.5 million class F at 'BBsf'; Outlook to Negative from Stable;

--$13.8 million class G at 'Bsf'; Outlook Negative;

--$2.8 million class H at 'B-sf'; Outlook Negative.

Fitch does not rate the class NR and interest-only class X-B certificates.