DBRS Confirms All Ratings of COMM 2014-CCRE20 Commercial Mortgage Trust

DBRS Limited (DBRS) confirmed the Commercial Mortgage Pass-Through Certificates, Series 2014-CCRE20 (the Certificates), issued by COMM 2014-CCRE20 Commercial Mortgage Trust as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-M at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AA (sf)
-- Class X-B at A (sf)
-- Class C at A (low) (sf)
-- Class PEZ at A (low) (sf)
-- Class X-C at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class X-D at BB (sf)
-- Class E at BB (low) (sf)
-- Class X-E at BB (low) (sf)
-- Class F at B (high) (sf)
-- Class X-F at B (sf)
-- Class G at B (low) (sf)

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

The rating confirmations reflect the overall stable performance exhibited since issuance. As of the September 2017 remittance, all 64 loans remained in the pool with an aggregate principal balance of $1,153.9 million, representing a collateral reduction of 2.4% since issuance as the result of scheduled loan amoritization. At issuance, the weighted-average (WA) DBRS Term debt service coverage ratio (DSCR) and DBRS Debt Yield were 1.62 times (x) and 8.8%, respectively. Based on the YE2016 financials for the underlying loans (99.7% reporting), the pool reported a WA DSCR and WA debt yield of 2.04x and 11.3%, respectively, compared with the previous year’s WA DSCR and WA debt yield of 1.89x and 10.5%, respectively. The YE2016 figures are reflective of WA net cash flow (NCF) growth of 22.2% over the DBRS NCF figures at issuance.

The pool benefits from a high concentration of loans secured by properites in urban markets (51.6% of the pool) and suburban markets (33.6% of the pool). The pool is somewhat concentrated by property type, with a relatively high concentration of loans secured by hospitality properties with 10 loans, representing 28.9% of the pool, including five loans within the Top 15, secured by limited-service and full-service hotels.

As of the September 2017 remittance, there were seven loans, representing 9.1% of the pool, on the servicer’s watchlist. There are no loans in special servicing. Two of the hotels in the Top 15, representing 5.0% of the pool combined, are on the servicer’s watchlist for performance declines. The Crowne Plaza Houston Katy Freeway (Prospectus ID#9, 2.7% of the pool) reported a YE2016 DSCR of 1.08x, compared with the DBRS issuance DSCR figure of 1.54x. The depressed cash flows from issuance are caused by the weakened Houston hotel market, but the property’s performance remains superior as compared with that of its competitive set. The DoubleTree Beachwood (Prospectus ID#12, 2.3% of the pool) reported a YE2016 DSCR of 1.02x, an improvement over the YE2015 DSCR of 0.67x, but cash flows remain depressed as compared with the issuance figures. At issuance, the DBRS term DSCR was 1.18x.

DBRS has provided updated loan-level commentary and analysis for the larger and/ or pivotal watchlisted loans in the transaction, as well as the Top 15 loans in the the DBRS Viewpoint 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 DBRS Viewpoint at viewpoint.dbrs.com

The ratings assigned to Class F materially deviate from the higher ratings implied by the quantitative results. 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 results that is a substantial component of a rating methodology. The deviation is warranted given sustainability of loan trends 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.

The principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies.

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

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

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