DBRS Confirms Ratings of JPMBB Commercial Mortgage Securities Trust 2014-C22

DBRS Limited (DBRS) confirmed all classes of the Commercial Pass-Through Certificates, Series 2014-C22 (the Certificates) issued by JPMBB 2014-C22 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-4 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 C at A (sf)
-- Class EC at A (sf)
-- Class D at BBB (low) (sf)
-- Class X-C at BB (sf)
-- Class E at BB (low) (sf)
-- Class F at B (high) (sf)
-- Class X-D at B (sf)
-- Class G at B (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has had a collateral reduction of 3.5% since issuance as a result of scheduled loan amortization and one loan having been repaid in full. At issuance, the pool consisted of 76 fixed-rate loans secured by 120 commercial properties. The May 2018 remittance shows 75 loans remaining in the pool, with a total outstanding trust amount of $1.10 billion. Three loans, representing 2.76% of the pool, are scheduled to mature in 2019. In addition, there are three loans that are fully defeased (1.12% of the pool). At issuance, six loans, representing 12.9% of the pool balance, were structured with full interest-only (IO) terms with an additional 37 loans, representing 60.0% of the pool balance, structured with partial IO terms. As at the May 2018 remittance, 19 loans, representing 51.3% of the pool balance, have partial IO periods remaining.

The top 15 loans, which represent 58.2% of the pool balance, continue to exhibit overall stable performance with a weighted-average (WA) debt service coverage ratio (DSCR) of 1.60 times (x) and a WA net cash flow growth over the respective DBRS issuance figures of 15.2%, based on the most recent year-end (YE) reporting available for the individual loans. All but three loans, representing 1.1% of the pool, are reporting YE2017 financials. Based on the most recent YE reporting, the pool reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.60x and 10.1%, respectively, compared with 1.39x and 8.3% at issuance, respectively.

As at the May 2018 remittance, there is one loan in special servicing and twelve loans, representing 23.7% of the pool, on the servicer’s watchlist. The specially serviced loan is 10333 Richmond (Prospectus ID#7), which represents 3.2% of the pool balance and was transferred to special servicing in December 2017 because of imminent default related to declining occupancy. Seven loans are watchlisted because of low occupancy, cash flow declines related to expense increases or upcoming tenant rollover. Four loans are watchlisted because of non-performance related items limited to deferred maintenance. One loan (Prospectus ID#3, Las Catalinas Mall, 6.9% of the pool) is watchlisted because of damages sustained from Hurricane Irma and Hurricane Maria; however, the property was repaired and all but four tenants began operations as at May 1, 2018.

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 applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall. The Class EC certificates are exchangeable with the Class A-S, Class B and Class C certificates (and vice versa).

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:

-- Las Catalinas Mall (Prospectus ID#3; 6.94% of the pool balance)
-- 10333 Richmond (Prospectus ID#7; 3.21% of the pool balance)
-- Crawford Place / Second Needham / Newton Corporate Center (Prospectus ID#14; 1.87% of the pool balance)
-- Charlottesville Fashion Square (Prospectus ID#15; 1.73% of the pool balance)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrs.com. The platform includes issuer and servicer data for the entire commercial mortgage-backed security 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.