DBRS Confirms All Classes of Morgan Stanley Bank of America Merrill Lynch Trust 2014-C17

DBRS Limited (DBRS) has today confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2014-C17 issued by Morgan Stanley Bank of America Merrill Lynch Trust 2014-C17 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 A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AA (low) (sf)
-- Class X-B at A (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 X-C at B (high) (sf)
-- Class F at B (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction. The collateral for this transaction consists of 67 fixed-rate loans secured by 72 commercial properties. As of the July 2017 remittance, there has been a collateral reduction of 1.9% as a result of scheduled loan amortization. Loans representing 93.0% of the current pool balance reported YE2016 cash flow figures. The portfolio reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.70 times (x) and 10.0%, respectively, compared with the DBRS WA DSCR and WA debt yield of 1.60x and 9.3%, respectively, at issuance. The largest 15 loans in the pool reported a WA DSCR and debt yield of 1.67x and 9.6%, respectively, reflective of a WA net cash flow growth of 11.6% over the DBRS issuance figures.

As of the July 2017 remittance, there were five loans, representing 4.3% of the current pool balance, on the servicer’s watchlist. Three loans are being monitored for upcoming major tenant lease expirations. Two loans are being monitored for non-performance-related issues limited to deferred maintenance or lack of financial reporting. There is one loan, representing 1.9% of the pool balance, in special servicing.

At issuance, DBRS shadow-rated the Courtyard King Kamehameha’s Kona Beach Hotel Lease Fee (Prospectus ID#6, 3.6% of the pool balance) as investment grade. DBRS has today confirmed that the performance of this loan remains consistent with investment-grade characteristics.

DBRS has provided updated loan-level commentary and analysis for the specially serviced loan, 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 methodology is CMBS North American Surveillance (March 2017), which can be found on dbrs.com under Methodologies.