DBRS Confirms Ratings of Citigroup Commercial Mortgage Trust 2014-GC25, Stable Trends

DBRS Limited (DBRS) confirmed the ratings of Commercial Mortgage Pass-Through Certificates, Series 2014-GC25 (the Certificates), issued by Citigroup Commercial Mortgage Trust 2014-GC25 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-AB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AA (high) (sf)
-- Class B at AA (sf)
-- Class C at A (low) (sf)
-- Class PEZ at A (low) (sf)
-- Class X-D at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class X-E at BB (high) (sf)
-- Class E at BB (sf)
-- Class X-F at B (high) (sf)
-- Class F at B (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance exhibited since issuance. At issuance, the collateral consisted of 62 fixed-rate loans secured by 99 commercial properties. As of the July 2017 remittance, 61 loans remain in the pool with an aggregate principal balance of $824 million, representing a collateral reduction of 2.1% due to the unscheduled repayment of one loan and scheduled loan amortization. According to YE2016 reporting, the transaction had a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.71x and 10.1%, respectively, compared to the DBRS Term DSCR and debt yield of 1.40x and 8.3%, respectively.

The pool is concentrated by property type, as eight loans, representing 36.2% of the pool, are secured by office properties, 26 loans (25.6% of the pool) are secured by retail properties and six loans (16.4% of the pool) are secured by multifamily properties. The pool is also concentrated by loan size, as the Top 10 and Top 15 loans represent 55.5% and 66.9% of the pool, respectively. Additionally, the largest loan, the Bank of America Plaza, represents 13.3% of the pool. To date, 51 loans (77.3% of the pool) reported partial-year 2017 net cash flow (NCF) figures, while all 61 loans reported YE2016 NCF figures. Based on the most recent cash flows available, the Top 15 loans reported a WA DSCR of 1.92x, compared to the WA DBRS Term DSCR of 1.41x, reflective of 32.6% NCF growth over the DBRS issuance figures.

As of the July 2017 remittance, there are two loans (3.5% of the pool) on the servicer’s watchlist. The larger of the two loans, the Denver Merchandise Mart (Prospectus ID#14, 3.1% of the pool), was flagged as the property experienced significant hail damage, whereas the smaller loan, Stapleton Business Center (Prospectus ID#53, 0.4% of the pool), was flagged due to near-term tenant rollover.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans and for the largest 15 loans in the pool, in the DBRS 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 at www.ireports.dbrs.com.

For more information on these rating actions, please 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 principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies.

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 under Related Documents or by contacting us at info@dbrs.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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