DBRS Confirms Ratings of Citigroup Commercial Mortgage Trust 2014-GC19

DBRS Limited (DBRS) confirmed the ratings of the Commercial Mortgage Pass-Through Certificates, Series 2014-GC19 issued by Citigroup Commercial Mortgage Trust 2014-GC19 as follows:

-- 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 AAA (sf)
-- Class B at AA (high) (sf)
-- Class C at AA (low) (sf)
-- Class PEZ at AA (low) (sf)
-- Class D at BBB (sf)
-- Class X-C at BBB (low) (sf)
-- Class E at BB (high) (sf)
-- Class X-D at BB (sf)
-- Class F at BB (low) (sf)

All trends are Stable. In addition, the rating on Class A-1 was discontinued following the full repayment of its outstanding balance with the January 2018 remittance.

The rating confirmations reflect the overall performance of the transaction. As of the February 2018 remittance, 76 loans remained in the pool with an aggregate principal balance of approximately $965.6 million, representing a collateral reduction of 5.0% since issuance due to unscheduled loan repayment and scheduled loan amortization. There are six loans (3.7% of the current pool) that have been fully defeased. To date, 49 loans, representing 65.6% of the current pool, have reported partial-year 2017 financials, while 65 loans, representing 86.6% of the current pool, have reported YE2016 financials. Based on the most recent year-end financials available, the pool had a weighted-average (WA) debt service coverage ratio (DSCR) and a WA debt yield of 1.70 times (x) and 10.9%, respectively, compared to the DBRS Term DSCR and WA Debt Yield of 1.50x and 9.6%, respectively. Based on the same financials, the top 15 loans (57.2% of the current pool) reported a WA DSCR of 1.65x, compared to the WA DBRS Term DSCR of 1.47x, representing a 19.2% WA net cash flow growth over the DBRS issuance figures.

As of the February 2018 remittance, there are no loans in special servicing and nine loans, representing 8.5% of the current pool, on the servicer’s watchlist. Of the nine loans on the servicer’s watchlist, four loans (4.8% of the current pool) were flagged for deferred maintenance issues, three loans (2.7% of the current pool) were flagged for performance-related reasons and one loan (0.5% of the current pool) was flagged for near-term tenant rollover. The remaining loan, Ramada Denver (Prospectus ID#48, 0.5% of the current pool) was recently transferred back from special servicing following the servicer’s resolution of an unauthorized property management change.

Classes X-A, X-B, X-C and X-D 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.

As part of this review, DBRS has provided updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- Prospectus ID #3 – 1500 Spring Garden
-- Prospectus ID #13 – Mid-City Plaza
-- Prospectus ID #28 – Paddocks Office Building
-- Prospectus ID #33 – Pioneer Building
-- Prospectus ID #35 – 334-336 West 46th Street
-- Prospectus ID #49 – Ramada Denver

For complimentary access to this content, please register for the DBRS Viewpoint platform at viewpoint.dbrs.com. The platform includes issuer and servicer data for the entire CMBS universe, as well as deal and loan-level commentary for all DBRS rated transactions.

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.

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.

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 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.