DBRS Assigns Provisional Ratings to JPMBB Commercial Mortgage Securities Trust 2014-C21

DBRS has today assigned provisional ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2014-C21 (the Certificates), to be issued by JPMBB Commercial Mortgage Securities Trust 2014-C21. The trends are Stable.

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 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 X-D 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)

Classes X-C, X-D, D, E, F, 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 73 fixed-rate loans secured by 84 commercial and multifamily properties. The transaction has a balance of $1,264,730,885. The third-largest loan, Miami International Mall (4.7% of the pool), and the 12th-largest loan, 307 West 38th Street (2.8% of the pool) are shadow-rated investment grade by DBRS. Proceeds for these loans were floored within the pool at BBB and BBB (low), respectively.

The combined partial IO and full-term IO concentration is 72.4%. Eight loans, representing 24.3% of the initial pool balance, provide for monthly payments of IO for their entire terms, five of which are in the top 14 loans. Overall, this results in a relatively low level of amortization during the loan term of -9.8%. Additionally, 23 loans, representing 58.8% of the pool, have a DBRS calculated Refi debt service coverage ratio (DSCR) of less than 1.00 times. However, these DSCRs are based on a weighted-average stressed refinance constant of 9.7%, which implies an interest rate of 9.0%, amortizing on a 30-year schedule. This represents a significant stress of nearly 4.4% 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 applicable methodology is CMBS Rating Methodology, which can be found on our website under Methodologies.

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