DBRS Assigns Provisional Ratings to JPMCC Commercial Mortgage Trust 2014-C20

DBRS has today assigned provisional ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2014-C20 (the Certificates), to be issued by JPMCC Commercial Mortgage Trust 2014-C20. The trends are Stable.

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3A1 at AAA (sf)
-- Class A-4A1 at AAA (sf)
-- Class A-3A2 at AAA (sf)
-- Class A-4A2 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)
-- Class X-C at AAA (sf)
-- Class A-S at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class EC at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (high) (sf)
-- Class G at B (sf)

Classes A-3A2, A-4A2, X-C, D, E, F, G and NR will be privately placed pursuant to Rule 144A.
The Class X balances are notional. DBRS ratings on interest-only (IO) certificates address the likelihood of receiving interest based on the notional amount outstanding. DBRS considers the IO certificates’ position within the transaction payment waterfall when determining the appropriate rating.

Up to the full certificate balance of the Class A-S, Class B and Class C certificates may be exchanged for Class EC certificates. Class EC certificates may be exchanged for up to the full certificate balance of the Class A-S, Class B and Class C certificates.

The collateral consists of 37 fixed-rate loans secured by 54 commercial and multifamily properties. The transaction has a balance of $878,008,421. The pool exhibits a DBRS weighted-average term debt service coverage ratio (DSCR) and debt yield of 1.47 times (x) and 8.4%, respectively, based on the senior trust balances. The DBRS sample included 23 loans, representing 81.6% of the pool. One loan, The Outlets at Orange, representing 10.3% of the pool, was shadow-rated investment grade by DBRS. Proceeds for the shadow-rated loans were floored within the pool at BBB (low). Finally, properties located in urban locations represent 27.2% of the pool, and benefit from consistent investor demand even in times of stress.

The combined partial IO and full-term IO concentration is 59.1%. There are five loans that are IO for the full term, representing 26.8% of the pool, all of which are in the top 17 loans. Overall, this results in a relatively low level of amortization during the loan term of -11.1%. Additionally, 20 loans, representing 58.8% of the pool, have a DBRS calculated refi DSCR of less than 1.00x. However, these DSCRs are based on a weighted-average stressed refinance constant of 9.6%, which implies an interest rate of 8.9%, amortizing on a 30-year schedule. This represents a significant stress of nearly 4.3% over the weighted-average contractual interest rate of the loans in the pool.

The ratings assigned to the Certificates by DBRS are based exclusively on the credit provided by the transaction structure and underlying trust assets. All classes will be subject to ongoing surveillance, which could result in upgrades or downgrades by DBRS after the date of issuance.

Notes:
All figures are in U.S. dollars unless otherwise noted.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The Rule 17g-7 Report of Representations and Warranties is hereby incorporated by reference and can be found by clicking on the link or by contacting us at info@dbrs.com.

The applicable methodology is CMBS Rating Methodology, which can be found on our website under Methodologies.