DBRS Confirms All Classes of JPMCC Commercial Mortgage Securities Trust 2014-C20

DBRS Limited (DBRS) has today confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2014-C20 issued by JPMCC Commercial Mortgage Securities Trust 2014-C20 as follows:

-- 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-4A1 at AAA (sf)
-- Class A-4A2 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class A-S at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AA (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 X-C at B (high) (sf)
-- Class G at B (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction. The collateral consists of 37 fixed-rate loans secured by 54 commercial properties, and as of the March 2017 remittance, there has been a collateral reduction of 2.0% since issuance. Loans representing 57.6% of the current pool balance are reporting YE2016 figures and loans representing 40.4% of the current pool balance are reporting YE2015 financials. According to the YE2016 financials, the pool reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.61 times (x) and 9.3%, respectively. The loans reporting YE2015 figures had a WA DSCR and WA debt yield of 1.44x and 8.9%, respectively. The DBRS WA DSCR and WA debt yield at issuance were 1.47x and 8.4%, respectively. The largest 15 loans in the pool represent 73.1% of the transaction balance. Nine of these loans reported YE2016 financials, exhibiting a WA net cash flow increase of 13.2% over the DBRS figures, with a WA DSCR and WA debt yield of 1.80x and 13.2%, respectively. One loan, representing 0.5% of the current pool balance, is fully defeased.

At issuance, DBRS shadow-rated the largest loan, The Outlets at Orange, representing 10.5% of the current pool balance, as investment-grade. DBRS has today confirmed that the performance of this loan remains consistent with investment-grade loan characteristics.

As of the March 2017 remittance, there are three loans on the servicer’s watchlist, representing 8.7% of the current pool balance, including one loan in the top 15. There are no loans in special servicing.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans, as well as for the largest 15 loans in the pool, in the DBRS CMBS IReports platform. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please log in to DBRS CMBS IReports at www.ireports.dbrs.com.

The ratings assigned to Class B materially deviate from the higher rating implied by the quantitative model. DBRS considers a material deviation to be a rating differential of three or more notches between the assigned rating and the rating implied by the quantitative model that is a substantial component of a rating methodology; in this case, the assigned rating reflect the sustainability of loan performance trends were not demonstrated.

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 (January 2017) and CMBS North American Surveillance (December 2016), which can be found on our website under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.