DBRS Confirms Ratings of WFRBS Commercial Mortgage Trust 2014-LC14

DBRS, Inc. (DBRS) has today confirmed all classes of WFRBS Commercial Mortgage Trust 2014-LC14 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3FL at AAA (sf)
-- Class A-3FX at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)
-- Class X-C at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class PEX at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (sf)

All trends are Stable.

The rating confirmations reflect the stable performance of the transaction since issuance. The collateral consists of 71 fixed-rate loans secured by 144 commercial and multifamily properties. As of the November 2014 remittance report, the pool has experienced a collateral reduction of 0.6% since issuance, as a result of loan amortization.

At issuance, DBRS shadow-rated two loans, representing 10.8% of the current pool balance, as investment grade. DBRS has today confirmed that the performance of both loans remains consistent with investment-grade loan characteristics.

As of the November 2014 remittance report, there are two loans on the servicer’s watchlist, representing 1.7% of the current pool balance. The largest loan in the watchlist, Oliver Multifamily Portfolio, representing 1.2% of the current pool balance, has been flagged for deferred maintenance issues at several of the properties within the portfolio. Issues include deterioration of parking lot asphalt and sidewalks, dented doors and wood rot along balcony railings. The loan is not considered to have an elevated default risk at this time.

The DBRS analysis included an in-depth review of the 15 largest loans in the transaction and the loans on the servicer’s watchlist, which collectively represent 57.19% of the current pool balance.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction, including details on the largest loans in the pool. The November 2014 Monthly Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

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.