Fitch Affirms JPMBB 2014-C19
KEY RATING DRIVERS
The affirmations reflect the transaction's stable performance since issuance. As of the April 2015 distribution date, the pool's aggregate principal balance has been reduced by 15.5% to \$1.42 billion from \$1.68 billion at issuance. No loans are defeased. Only 17% of the loans reported partial year 2014 financials. There is a notable retail exposure within the transaction. Eight of the top 15 loans representing 35% of the pool are secured by retail properties.
The largest loan in the pool is the Outlets at Orange loan (8.8% of the pool), which is secured by a 787,697 square foot (sf) open air outlet mall located in Orange, CA. Built in 1998, the mall is anchored by Saks Fifth Avenue Off 5th, Last Call by Neiman Marcus and Nordstrom Rack. Entertainment tenants include a 30-screen AMC Theater, Dave & Buster's, an indoor Vans Skate Park, Lucky Strike Bowling and more than 25 restaurants and cafes. The debt service coverage ratio (DSCR) was reported to be 2.75x as of September 2014 compared to 2.79x at issuance. Occupancy was reported to be 99%, which is in line with the occupancy at issuance.
The next largest loan in the pool is the NSP Multifamily Portfolio loan (8.4%). The loan is collateralized by four multifamily properties totaling 1,382 units. The properties are located in Coraopolis, PA, Cranberry Township, PA, Florence, KY and Lexington, KY. As of year-end 2014, the DSCR and occupancy was reported to be 1.87x and 88%, respectively, compared to 1.44x and 91% at issuance.
The third largest loan in the pool is the 470 Vanderbilt Avenue loan (7%), which is secured by a 646,834 sf office building located in downtown Brooklyn, NY. The 10-story building is directly across from the Atlantic Yards Development Complex and several blocks east of the Barclays Center. 70.9% of the net rentable area is occupied by New York City agencies on long-term leases. At issuance, the property was 88% occupied and the DSCR was 1.87x.
RATING SENSITIVITIES
The Rating Outlook for all classes remains Stable due to stable collateral performance. Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's portfolio-level metrics. Additional information on rating sensitivity is available in the report 'JPMBB 2014-C18' (April 22, 2014), available at 'www.fitchratings.com'.
Fitch affirms the following classes as indicated:
--\$58.6 million class A-1 at 'AAAsf', Outlook Stable;
--\$468.7 million class A-2 at 'AAAsf', Outlook Stable;
--\$112.4 million class A-3 at 'AAAsf', Outlook Stable;
--\$276.3 million class A-4 at 'AAAsf', Outlook Stable;
--\$62.1 million class A-SB at 'AAAsf', Outlook Stable;
--\$1.1* billion class X-A at 'AAAsf', Outlook Stable;
--\$89.9* million class X-B at 'AA-sf', Outlook Stable;
--\$98.7 million class A-S at 'AAAsf', Outlook Stable;
--\$89.9 million class B at 'AA-sf', Outlook Stable;
--\$63.4 million class C at 'A-sf', Outlook Stable;
--\$252 million class EC at 'A-sf', Outlook Stable;
--\$65.2 million class D at 'BBB-sf', Outlook Stable;
--\$31.7 million class E at 'BBsf', Outlook Stable;
--\$17.6 million class F at 'Bsf', Outlook Stable.
*Notional and interest-only.
Fitch does not rate the class NR, CSQ and the interest-only X-C certificates. Class A-S, B, and C certificates may be exchanged for a related amount of class EC certificates, and class EC certificates may be exchanged for class A-S, B, and C certificates. Fitch previously withdrew the rating on the class A-2FL and A-2FX certificates.
A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:
--'JPMBB 2014-C19 - Appendix' (April 22, 2014)
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:
Structured Finance >> CMBS >> Criteria Reports.
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