DBRS Confirms All Classes of MSBAM 2014-C17 Mortgage Trust

DBRS Limited (DBRS) has today confirmed all classes of MSBSM 2014-C17 Mortgage Trust as follows:

-- 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-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class A-SB 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 PST at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (low) (sf)
-- Class F at B (sf)

DBRS does not rate Class G, the first loss piece. All trends are stable.

The rating confirmations reflect that the transaction’s performance has remained in line with expectations since issuance in August 2014. As of the July 2015 remittance, the pool consists of 67 loans secured by 72 properties. Since issuance, the transaction has experienced a total collateral reduction of 0.6% as a result of scheduled amortization. The transaction has a weighted-average (WA) debt service coverage ratio and the WA debt yield of 1.5 times and 10.2%, respectively; however, only 18.4% of the pool is reporting YE2014 financials.

As of the July 2015 remittance, there are two loans on the servicer’s watchlist, representing 6.5% of the current pool balance. The 600 & 610 South Rockford Drive loan (Prospectus ID#56, 0.4% of the pool) is on the watchlist because of HEI’s (100% of the NRA) lease expiration, which occurred on July 31, 2015. According to the borrower, the tenant and borrower have come to a verbal agreement regarding a lease extension for an additional five years. It is reported that the tenant has invested a considerable amount of its own capital to improve the property. The borrower has been contacted for an updated rent roll and executed lease agreement.

At issuance, DBRS shadow-rated one loan investment grade, representing 3.6% of the current pool balance. DBRS has today confirmed that the performance of the Courtyard King Kamehameha’s Kona Beach Hotel loan remains consistent with investment-grade loan characteristics.

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 and loans on the servicer’s watchlist. The July 2015 Monthly Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact DBRS at info@dbrs.com.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are 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.

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

The applicable methodologies are North American CMBS Rating Methodology (June 2015) and CMBS North American Surveillance (January 2015), which can be found on our website under Methodologies.