DBRS Confirms Ratings of JPMBB Commercial Mortgage Securities Trust 2014-C22

DBRS Limited (DBRS) has today confirmed all classes of Commercial Pass-Through Certificates, Series 2014-C22 (the Certificates) issued by JPMBB 2014-C22 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-4 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A 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 X-C at BB (sf)
-- Class E at BB (low) (sf)
-- Class F at B (high) (sf)
-- Class X-D at B (sf)
-- Class G at B (low) (sf)

All trends are Stable. The Class EC certificates are exchangeable with the Class A-S, Class B and Class C certificates (and vice versa).

The rating confirmations reflect the overall stable performance of the transaction, which has experienced a collateral reduction of 2.2% as a result of scheduled loan amortization since closing. At issuance, the pool consisted of 76 fixed-rate loans secured by 120 commercial properties. As of the May 2017 remittance, all 76 loans remain in the pool with an aggregate outstanding principal balance of $1,096.1 million. Two loans, representing 0.8% of the pool balance, are fully defeased. The top 15 loans continue to exhibit stable performance with a weighted-average (WA) debt service coverage ratio (DSCR) of 1.67 times (x) and a WA net cash flow growth over the respective DBRS issuance figures of 20.8%, based on the most recent year-end (YE) reporting available for the individual loans. At issuance, six loans, representing 12.9% of the pool balance, were structured with full interest-only (IO) terms, with an additional 37 loans, representing 60.0% of the pool balance, structured with partial IO terms. As of the May 2017 remittance, 19 loans, representing 45.8% of the pool balance, have partial IO periods remaining. Based on the most recent YE reporting, the pool reported a WA DSCR and WA debt yield of 1.70x and 10.2%, respectively, compared with 1.60x and 9.4% at issuance, respectively.

As of the May 2017 remittance, there are no loans in special servicing and ten loans, representing 13.2% of the pool balance, on the servicer’s watchlist. Five loans are on the watchlist as a result of low occupancy rates or upcoming tenant rollover. One of these properties has achieved full occupancy as of YE2016, and another is secured by a single-tenant property that has a lease amendment drafted, which has been sent to the lender for approval. Two loans on the watchlist have been flagged because of damages sustained from severe weather and a fire; however, both borrowers have received insurance proceeds with repairs in progress. An additional two loans on the watchlist have been flagged for non-performance-related reasons pertaining to deferred maintenance.

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 commercial mortgage-backed securities (CMBS) IReports platform. Registration is free. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please register or log into www.ireports.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 principal methodologies are North American CMBS Rating Methodology (January 2017) and CMBS North American Surveillance (December 2016), which can be found on www.dbrs.com under Methodologies.

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