Morningstar DBRS Confirms Credit Rating on Morgan Stanley Bank of America Merrill Lynch Trust 2014-C17

DBRS, Inc. (Morningstar DBRS) confirmed the credit rating on Class E of the Commercial Mortgage Pass-Through Certificates, Series 2014-C17 issued by Morgan Stanley Bank of America Merrill Lynch Trust 2014-C17 at CCC (sf). Class E has a credit rating that does not typically carry trends in commercial mortgage-backed securities (CMBS).

The credit rating confirmation reflects the potential maturity risk for the remaining loan in the pool, Holiday Inn Center City Charlotte (Prospectus ID#12, 100% of the pool). The loan was formerly in special servicing; however, it was able to secure an extension, pushing the maturity date to July 2025. While performance has improved since the loan's return to the master servicer, the loan's history in special servicing and borrower's inability to repay the loan at the initial maturity date elevate the loan's maturity risk, warranting the credit rating confirmation.

Since the transactions last review in June 2024, 34 loans were repaid. One loan, Arrowhead Business Park (Prospectus ID#33), liquidated at a loss of $2.6 million, which was less than the Morningstar DBRS expectation of $5.4 million of loss in the June 2024 review. Two additional loans, Seaway Plaza (Prospectus ID# 48) and Liberty Park Apartments (Prospectus ID# 57), were liquidated with no loss to the trust.

The Holiday Inn Center City Charlotte loan is secured by a 294-room, full-service hotel in Charlotte, North Carolina. The subject initially transferred to special servicing in April 2024 for imminent monetary default in advance of the loan's scheduled maturity in July 2024. The borrower was able to negotiate a one-year extension pushing the maturity date to July 2025, and the loan subsequently transferred back to the master servicer. At the time of last review, the subject reported a slightly less than breakeven debt service coverage ratio (DSCR) coupled with a revenue per available room (RevPAR) penetration figure of only 75.2%. According to the December 2024 STR report there has been a considerable improvement in performance metrics, noting an occupancy, average daily rate, and RevPAR of 66.0%, $174.29, and $115.05, respectively, with a RevPAR penetration of 113.6%. In November 2023, following a $12 million renovation, the subject converted its flag to a DoubleTree operated by Hilton, which appears to have helped performance metrics since the last review. No updated financials have been reported since March 2024; however, given the improvements in STR metrics, it is likely financial performance has improved in 2024. At issuance, the subject was appraised for $35.5 million, following the renovations, the subject was reappraised for $52.0 million in June 2024, representing a 46.5% increase from issuance. Given the borrower was unable to repay the loan at its originally scheduled July 2024 maturity date, there is still continued maturity risk supporting the credit rating confirmations. The improved STR metrics in 2024 and increase in valuation, however, do act as mitigants to that risk.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024), https://dbrs.morningstar.com/research/437781.

All credit ratings are subject to surveillance, which could result in credit ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by Morningstar DBRS.

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

The principal methodology is North American CMBS Surveillance Methodology (February 28, 2025), https://dbrs.morningstar.com/research/448963

Other methodologies referenced in this transaction are listed at the end of this press release.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process. Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The Morningstar DBRS Long-Term Obligation Rating Scale definition indicates that credit ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.

DBRS, Inc.
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Chicago, IL 60602 USA
Tel. +1 312 332-3429

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

-- North American CMBS Multi-Borrower Rating Methodology (April 9, 2025)/North American CMBS Insight Model v 1.3.0.0,
https://dbrs.morningstar.com/research/451739
-- Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024),
https://dbrs.morningstar.com/research/439702
-- Legal Criteria for U.S. Structured Finance (December 3, 2024),
https://dbrs.morningstar.com/research/444064
-- North American Commercial Mortgage Servicer Rankings (August 23, 2024),
https://dbrs.morningstar.com/research/438283

For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.