Fitch Ratings has affirmed 15 classes of J.P. Morgan Chase Commercial Mortgage Securities Trust (JPMBB) commercial mortgage pass-through certificates series 2014-C18. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations reflect the transaction's stable performance since issuance. As of the January 2015 distribution date, the pool's aggregate principal balance has been reduced by 0.8% to $950.4 million from $957.6 million at issuance. No loans are defeased. Only 26% of the loans reported partial year 2014 financials. There is a notable retail exposure within the transaction. Eight of the top 15 loans representing 44.1% of the pool are secured by retail properties.
The largest loan in the pool is the Miami International Mall loan (10.5% of the pool), which is secured by 306,855 square feet (sf) of inline retail space at the 1.1 million sf super-regional mall located 12 miles northwest of downtown Miami. Non-collateral anchors include Macy's, JC Penney, Sears and Kohl's. The property features more than 140 retailers and in-line tenants include H&M, Gap, Forever 21, Old Navy and Victoria's Secret. The debt service coverage ratio (DSCR) was reported to be 2.61x as of September 2014 compared to 2.77x at issuance. Occupancy was reported to be 94%, which is in line with the occupancy at issuance.
The next largest loan in the pool is the Jordan Creek Town Center loan (10.4% of the pool), which is secured by 503,034 sf of inline space at the 1.1 million sf regional mall located in West Des Moines, IA. The mall is anchored by Dillard's (non-collateral), Younkers (non-collateral) and Scheel's All Sports (leasehold). The mall was developed by the sponsor, General Growth Properties, in 2004 and is part of a larger development that includes a lifestyle center, Village at Jordan Creek, and a three-acre lake surrounded by bike trails, waterfront dining, a hotel and an amphitheater. As of September 2014, the reported DSCR and occupancy was 1.87x and 96%, respectively. This compares favorably to the 1.59x DSCR and 95% occupancy at issuance.
The third largest loan in the pool is the Marriott Anaheim loan (8.4% of the pool). The loan is collateralized by a 1,030-key full-service hotel in Anaheim, CA. The property is adjacent to the Anaheim Convention Center and two blocks from the Disneyland Resort. Property Amenities include a ballroom and other smaller meeting/conference space totaling 111,000 sf. The hotel also features a business center, a 24-hour fitness center and an outdoor heated pool. Updated financial information was not available. At issuance, the DSCR was 1.30x and occupancy was 73%.
RATING SENSITIVITIES
The Rating Outlook for all classes remains Stable due to stable collateral performance. Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's portfolio-level metrics. Additional information on rating sensitivity is available in the report 'JPMBB 2014-C18' (Feb. 11, 2014), available at 'www.fitchratings.com'.
Fitch affirms the following classes:
--$45 million class A-1 at 'AAAsf', Outlook Stable;
--$85.2 million class A-2 at 'AAAsf', Outlook Stable;
--$23.5 million class A-3 at 'AAAsf', Outlook Stable;
--$87.5 million class A-4A1 at 'AAAsf', Outlook Stable;
--$87.5 million class A-4A2 at 'AAAsf', Outlook Stable;
--$267 million class A-5 at 'AAAsf', Outlook Stable;
--$67.4 million class A-SB at 'AAAsf', Outlook Stable;
--$55.1 million class A-S at 'AAAsf', Outlook Stable;
--$718.2 million* class X-A at 'AAAsf', Outlook Stable;
--$69.4 million class B at 'AA-sf', Outlook Stable;
--$37.1 million class C at 'A-sf', Outlook Stable;
--$161.6 million class EC at 'A-sf', Outlook Stable;
--$56.3 million class D at 'BBB-sf', Outlook Stable;
--$19.2 million class E at 'BBsf', Outlook Stable;
--$12 million class F at 'Bsf', Outlook Stable.
*Notional and interest-only.
Class A-S, B and C certificates may be exchanged for a related amount of class EC certificates, and class EC certificates may be exchanged for class A-S, B and C certificates.
Fitch does not rate the class NR and X-C certificates. Fitch previously withdrew the rating on the interest-only class X-B certificates.
A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:
--'JPMBB 2014-C18 -- Appendix' (Feb. 11, 2014).
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:
Structured Finance >> CMBS >> Criteria Reports
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=978768
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.
