OREANDA-NEWS. Fitch Ratings has affirmed all rated classes of MCAP CMBS Issuer Corporation's (MCAP) commercial mortgage pass-through certificates, series 2014-1. A detailed list of rating actions follows at the end of this press release. All currencies are Canadian dollars (CAD).

KEY RATING DRIVERS
The affirmations are due to the overall stable performance of the underlying collateral pool since issuance. There have been no delinquent or specially serviced loans since issuance. The certificates represent the beneficial ownership in the trust, primary assets of which are 32 Canadian loans secured by 40 commercial properties. As of the November 2015 distribution date, the pool's aggregate principal balance has been reduced by 2.4% to $218.6 million from $224 million at issuance.

The ratings reflect strong historical Canadian commercial real estate loan performance, including a low delinquency rate and low historical losses of less than 0.1%, as well as positive loan attributes such as short amortization schedules, recourse to the borrower, and additional guarantors. For more information on prior Canadian CMBS securitizations, see Fitch's 'Canadian CMBS Default and Loss Study,' dated October 2013, available on Fitch's website at www.fitchratings.com.

The pool has a weighted average amortization term of 25.2 years, which represents faster amortization than U.S. conduit loans. There are no partial or full interest-only loans. The pool's scheduled maturity balance represents a paydown of 10.4% of the November 2015 balance and 12.5% of the balance at issuance. Of the pool, 82.9% of the loans feature full or partial recourse to the borrowers and/or sponsors.

The largest loan (12% of the pool) is a nonrecourse loan secured by a 98,816 square foot (sf) mixed-use office and retail property located in Markham, ON. The property was developed between 2005 and 2007, and major collateral tenants include LA Fitness, Michael Angelo's Market Place, and Sleep Country Canada. As of the servicer-provided May 2015 rent roll, the property was 98% occupied, down slightly from 100% at issuance. The loan is sponsored by Peter Czapka, Michael Pugliese, and Michael Rice.

The second largest loan (7.5% of the pool) is secured by six standalone retail restaurant buildings totalling 42,083 sf located in Richmond Hill, ON, approximately 36 kilometers north of the Toronto CBD. The buildings were developed in 2008 and are fully leased to six restaurant tenants (three national chain and three local restaurant tenants). Largest tenants include The Keg, Destiny Asian Fusion, and Moxie's Classic Grill. The loan carries two partial recourse guarantees from the sponsors, Jomasa Investments and RPJM Capital.

RATING SENSITIVITIES
The Rating Outlooks on all classes remain Stable. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's overall portfolio-level metrics. Additional information on rating sensitivity is available in the report 'MCAP 2014-1' (Nov. 24, 2014), available at www.fitchratings.com.

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

Fitch has affirmed the following ratings:
--$183.9 million class A at 'AAAsf'; Outlook Stable;
--$5.6 million class B at 'AAsf'; Outlook Stable;
--$8.1 million class C at 'Asf'; Outlook Stable;
--$7 million class D at 'BBBsf'; Outlook Stable;
--$3.4 million class E at 'BBB-sf'; Outlook Stable;
--$2.8 million class F at 'BBsf'; Outlook Stable;
--$2.8 million class G at 'Bsf'; Outlook Stable.

Fitch does not rate the interest-only class X, or the $5 million non-offered class H.