DBRS Confirms All Classes of JPMCC Commercial Mortgage Securities Trust 2014-C20

DBRS Limited (DBRS) confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2014-C20 issued by JPMCC Commercial Mortgage Securities Trust 2014-C20 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3A1 at AAA (sf)
-- Class A-3A2 at AAA (sf)
-- Class A-4A1 at AAA (sf)
-- Class A-4A2 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 X-B at AA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class EC at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (high) (sf)
-- Class X-C at B (high) (sf)
-- Class G at B (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction since issuance, when the collateral consisted of 37 fixed-rate loans secured by 54 commercial properties. As at the March 2018 remittance, there has been a collateral reduction of 2.0% since issuance because of scheduled loan amortization and the prepayment of one loan, with 36 of the original loans remaining in the pool. Two loans, representing 2.6% of the current pool balance, are fully defeased.

Loans representing 45.1% of the current pool balance are reporting YE2017 figures, while loans representing 50.7% of the pool are reporting partial-year 2017 financials. Based on the most recent year-end financials available, the pool reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.68 times (x) and 9.8%, respectively. The WA DBRS Term DSCR and WA DBRS Debt Yield at issuance were 1.47x and 8.4%, respectively. The largest 15 loans in the pool represent 73.6% of the current pool balance and, based on the most recent year-end financials, those loans reported a WA DSCR of 1.69x, representing a WA net cash flow (NCF) growth of 12.1% over the DBRS issuance NCF figures.

At issuance, DBRS shadow-rated the largest loan, The Outlets at Orange (10.6% of the current pool balance), investment grade. With this review, DBRS has confirmed that the loan’s performance remains consistent with investment-grade characteristics. For additional information, please see the DBRS Loan Commentary for this loan in the DBRS Viewpoint platform.

As at the March 2018 remittance, there are seven loans on the servicer’s watchlist, representing 14.3% of the current pool balance; however, four of these loans, representing 7.1% of the current pool balance, were flagged for non-credit issues related to deferred maintenance. The remaining loans are being monitored for occupancy-related cash flow declines or upcoming rollover; DBRS assumed a stressed scenario for these loans to increase the probability of default in the analysis for this review.

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.

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:

-- The Outlets at Orange
-- Gumberg Retail Portfolio
-- 200 West Monroe
-- 109 Prince Street
-- Westminster Mall
-- University Gate Apartments
-- 1560 Trapelo Road
-- The Gate at Aberdeen Proving Ground

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.