DBRS Confirms Morgan Stanley Bank of America Merrill Lynch Trust 2014-C14

DBRS, Inc. (DBRS) confirmed the ratings on all classes of Commercial Mortgage Pass-Through Certificates, Series 2014-C14 issued by Morgan Stanley Bank of America Merrill Lynch Trust 2014-C14 as follows:

-- 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 (sf)
-- Class X-B at AA (high) (sf)
-- Class C at A (low) (sf)
-- Class PST at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (high) (sf)
-- Class F at BB (sf)
-- Class X-C at BB (low) (sf)
-- Class G at B (high) (sf)

All trends are Stable.

The Class A-S, Class B and Class C certificates may be exchanged for the Class PST certificates (and vice versa).

The rating confirmations reflect the overall performance of the transaction, which has remained stable year over year since issuance. As of the September 2017 remittance, 56 of the original 58 loans remain in the transaction, as there has been a collateral reduction of 4.6% since issuance. Based on the most recent YE2016 financials, the pool reported a weighted-average (WA) debt service coverage ratio and WA debt yield of 1.90 times (x) and 11.9%, respectively. In comparison, these figures in YE2015 were 1.89x and 11.6%, respectively.

As of the September 2017 remittance, there are eight loans on the servicer’s watchlist, representing 9.9% of the current pool balance. While four loans, cumulatively representing 1.9% of the current pool balance, have been flagged for non-performance-related reasons, the largest loan on the servicer’s watchlist continues to exhibit declined performance. The Aspen Heights – Columbia loan (3.6% of the current pool balance) is secured by a student housing property in Columbia, Missouri, home to the University of Missouri. The subject continues to struggle year over year because of declining occupancy and rental rates.

At issuance, DBRS shadow-rated the JW Marriott and Fairfield Inn loan (Prospectus ID#5; 5.3% of the current pool balance) and the Courtyard Isla Verde Beach Resort loan (Prospectus ID#19; 2.0% of the current pool balance) as investment grade. DBRS has confirmed that the performance of these loans remains consistent with investment-grade loan characteristics. The Courtyard Isla Verde Beach Resort loan is secured by a hotel property in Puerto Rico, which was recently affected by Hurricanes Irma and Maria. DBRS was able to confirm that the property was not listed on any Significant Insurance Event report provided by the servicer and that the subject remains open as it did not suffer major damage as a result of either storm.

Classes X-A, X-B and X-C are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated reference tranche adjusted upward by one notch if senior in the waterfall.

All ratings will be subject to ongoing surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans in the transaction, as well as for the top 15 loans, in 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.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. Please note that not every related methodology listed under a principal Structured Finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

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.

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