DBRS Assigns Provisional Ratings to JPMBB Commercial Mortgage Securities Trust 2014-C22

DBRS has today assigned provisional ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2014-C22 (the Certificates), to be issued by JPMBB Commercial Mortgage Securities Trust 2014-C22. The trends are Stable.

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

Classes A-3A2, X-C, X-D, X-E, D, E, F and G 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 76 fixed-rate loans secured by 120 commercial and multifamily properties. The transaction has a balance of $1,120,314,270. One loan in the pool, U-Haul Self Storage Whole Loan, is a split loan consisting of a $27.4 million (2.4% of the pool) pooled note and a $15.1 million pari passu non-pooled note.

The pool is relatively diverse based on loan size, with a concentration profile equivalent to that of a pool of 31 equally sized loans, despite the largest loan representing 8.0% of the pool. Increased pool diversity helps to insulate the higher-rated classes from event risk. The combined partial IO and full-term IO concentration is 72.1%. Six loans, representing 12.9% of the initial pool balance, provide for monthly payments of IO for their entire terms, two of which are top 15 loans. Thirty-eight loans, representing 62.4% 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 9.9%, which implies an interest rate of 9.3%, amortizing on a 30-year schedule. This represents a significant stress of nearly 4.7% 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.