OREANDA-NEWS. S&P Global Ratings today raised its ratings on six classes of commercial mortgage pass-through certificates from Bear Stearns Commercial Mortgage Securities Trust 2004-TOP14, a U. S. commercial mortgage-backed securities (CMBS) transaction (see list).

The upgrades follow our analysis of the transaction, primarily using our criteria for rating U. S. and Canadian CMBS transactions, which included a review of the credit characteristics and performance of the remaining loans inthe pool, the transaction's structure, and the liquidity available to the trust.

We raised our ratings on classes J, K, L, M, N, and O to reflect our expectation of the available credit enhancement for these classes, which we believe is greater than our most recent estimate of necessary credit enhancement for the respective rating levels. The upgrades also follow our views regarding the collateral's current and future performance, available liquidity support, as well as the significantly lower trust balance.

While available credit enhancement levels suggest further positive rating movements on classes K, L, M, N, and O, our analysis also considered the subordination of the classes within the transaction as well as the susceptibility to reduced liquidity support, particularly from three balloon loans ($4.3 million, 22.5%) that mature in early 2019. All three loans are secured by retail or industrial properties in California and have reported lowoccupancies or single tenant exposure.

TRANSACTION SUMMARY

As of the Aug. 12, 2016, trustee remittance report, the collateral pool balance was $19.0 million which is 2.1% of the pool balance at issuance. The pool currently includes 13 loans (reflecting cross-collateralized and cross-defaulted loans), down from 107 loans at issuance. No loans are with thespecial servicer or defeased and five ($5.0 million, 26.2%) are on the master servicer's watchlist. The master servicer, Wells Fargo Bank N. A., reported year-end financial information for 98.2% of the remaining loans in the pool.

We calculated a 1.52x S&P Global Ratings weighted average debt service coverage and 34.7% S&P Global Ratings weighted average loan-to-value ratio using a 8.09% S&P Global Ratings weighted average capitalization rate for the remaining loans.

To date, the transaction has experienced $3.8 million in principal losses, or 0.4% of the original pool trust balance.