OREANDA-NEWS. Fitch Ratings has affirmed DECO 2014 - BONN LIMITED as follows:

EUR315.2m Class A (ISIN XS1150577150) due November 2024: 'AAAsf'; Outlook Stable
EUR48.2m Class B (ISIN XS1150578638) due November 2024: 'AA+sf'; Outlook Stable
EUR74.2m Class C (ISIN XS1150578802) due November 2024: 'AA-sf'; Outlook Stable
EUR88.6m Class D (ISIN XS1150579362) due November 2024: 'A-sf'; Outlook Stable
EUR85.7m Class E (ISIN XS1150580022) due November 2024: 'BBB-sf'; Outlook Stable
EUR40.4m Class F (ISIN XS1150581186) due November 2024: 'BBsf'; Outlook Stable

This transaction is a securitisation of a EUR680m commercial mortgage loan. The loan was granted by Deutsche Bank AG, London Branch (DB) to 24 pre-existing German special purpose vehicle (SPV) borrowers to refinance 29 office assets, located mainly in the top seven German cities.

KEY RATING DRIVERS
Since the ratings were assigned in December 2014, three properties were sold. The associated allocated loan amounts and release premia were allocated to the notes on a pro rata and sequential basis, respectively. Two of these properties were under development at time of closing; therefore their contribution to overall recoveries in the highest rating scenarios was limited at the time of Fitch's analysis. However, sales of these newly developed properties have now resulted in principal proceeds for the top tranches (where upgrade potential is limited) and are the main driver of today's affirmation.

The portfolio securing the loan is generally of sound quality and well-located in the top seven German cities. Yields in most German office markets are further compressed and approaching record lows, indicating strong investor demand.

The dominance of the anchor tenant Allianz SE (AA-/Stable) is both a benefit as well as a risk for the transaction, contributing 55% of income to the transaction. Although new properties are being developed, the risk of Allianz vacating from the entire existing stock is remote due to the importance and scale of its operations.

The loan (now at EUR652.3m) has entered its faster amortisation phase and the loan-to-value (LTV) has decreased to 68.8% from 69% at closing. Occupancy has risen to 92% from 89.2% during the same period, mainly due to the release of vacant assets, while the weighted average unexpired lease term (WAULT) has increased to 6.3 years from 5.7 years.

The servicer has confirmed that the land charge registration regarding the Mittelweg 176-177 property in Hamburg has taken place. This leaves Sendlinger-Tor-Platz, Munich, and Van-der-Smissen-Strasse 1-2a, Hamburg) as the only properties that remain under consideration for the land charge registration - which we have accounted for in our analysis.

RATING SENSITIVITIES
A reversal of investor's sentiment about the German office market or deterioration of the rating of the main tenant (Allianz SE) could significantly affect the performance of the transaction and lead to negative rating actions.

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

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Fitch did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable.

Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
The information below was used in the analysis.
-Loan-by-loan data provided by Situs Asset Management Limited at end-November 2015
-Transaction reporting provided by Situs Asset Management Limited at end-November 2015