Fitch Ratings has affirmed ten classes of J.P. Morgan Chase Commercial Mortgage Securities Trust (JPMBB) commercial mortgage pass-through certificates series 2013-C14.

The Outlook for class B has been revised to Stable from Negative.

RATING ACTIONS

Entity / Debt

Rating

Prior

JPMBB 2013-C14

A-4 46640LAD4

LT

AAAsf

Affirmed

AAAsf

A-S 46640LAH5

LT

AAAsf

Affirmed

AAAsf

A-SB 46640LAE2

LT

AAAsf

Affirmed

AAAsf

B 46640LAJ1

LT

Asf

Affirmed

Asf

C 46640LAK8

LT

BBBsf

Affirmed

BBBsf

D 46640LAN2

LT

B-sf

Affirmed

B-sf

E 46640LAQ5

LT

CCCsf

Affirmed

CCCsf

F 46640LAS1

LT

CCsf

Affirmed

CCsf

G 46640LAU6

LT

Csf

Affirmed

Csf

Page

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VIEW ADDITIONAL RATING DETAILS

KEY RATING DRIVERS

Stable Loss Expectations: While loss expectations remain high due to two regional malls (26.2%) in special servicing, the Outlook revision to Stable from Negative for class B reflects the generally stable performance of the other remaining loans in the pool and Fitch's expectation of paydown from maturing loans (all of the loans in the pool are scheduled to mature between June and August 2023).

Fitch's current ratings incorporate a base case loss of 15.6%. The Negative Rating Outlooks on classes C and D reflect the possibility of a downgrade should performance and/or values of the malls decline further or should loans have difficulty refinancing as they approach their respective maturity dates.

The largest loan in special servicing (and second largest loan in the pool; 14.7%) is the Meadows Mall, which is secured by 308,190-sf of in line space of a 945,043-sf regional mall located in Las Vegas, NV, approximately four miles west of downtown and south of Interstate 95. The four anchors, Dillard's, Macy's, JCPenney and Sears (closed in February 2020), own their improvements. The loan is sponsored by Brookfield Property Partners, which acquired the property and subject loan in August 2018.

Performance continues to struggle with the YE 2021 NOI 9% below September 2020 NOI and 12% below YE 2019 NOI. The debt service coverage ratio (DSCR) declined to 1.11x as of YE 2021 from 1.22x at September 2020, 1.27x at YE 2019, 1.42x at YE 2018, and 1.55x at issuance. Collateral occupancy as of March 2022 was reported to be 87.8% compared with 84% at March 2020 and 91% in March 2019. Reported in-line tenant sales increased to $488 per square foot (psf) for YE 2020 compared to $380psf for the trailing 12-month period ending March 31, 2020, $378psf for YE 2018, $364psf for YE 2017 and $416psf at issuance in 2013.

The loan transferred to the special servicer in August 2020 for monetary default. A lockbox is currently in place and all property cash flow is being controlled. According to the servicer, discussions are ongoing with the borrower for a potential forbearance and/or loan modification. Fitch's base case loss of 40% reflects a 15.2% implied cap rate to the YE 2021 servicer reported NOI.

The second largest loan in special servicing and largest contributor to expected losses is the Southridge Mall (11.2%). The loan is secured by a 1.2 million-sf regional mall located in Greendale, WI (approximately 10 miles from Milwaukee) and is sponsored by Simon Property Group. The property is currently anchored by Macy's (collateral) and JCPenney (non-collateral). Major non-collateral tenants also include Dick's Sporting Goods and Round 1, both of which occupy a Seritage-owned former Sears anchor (vacated in September 2017).

The property also has vacant anchor spaces, including a 219,400-sf (non-collateral) anchor space previously leased to Boston Store, which vacated in 2018, and 85,000-sf (collateral; 15% of NRA) previously leased to Kohls, which vacated and moved to a new center in late 2018 and whose lease obligation ended in January 2020. The village of Greendale has been in discussions with a developer regarding a mixed-use development on the former Boston Store site.

As of August 2020, the collateral is 69% leased compared with 95% at issuance. The YE 2020 DSCR was reported to be 1.53x compared with 1.50x for YE 2019, 1.64x for YE 2018, and 1.63x at issuance. Both in-line and anchor tenant sales have declined since issuance and were declining prior to the pandemic; in-line tenant sales were reported to be $280psf for the TTM ending February 2021 compared with $375psf for 2019, $373psf for 2018, $375psf for 2017, $406psf in 2016 and $411psf in 2015. Collateral anchor Macy's gross sales were reported to be $8.4 million (or $56psf) for the TTM ending February 2021 compared to $8.0 million for 2018, $8.4 million for 2017, $9.7 million in 2016, and $10.9 million in 2015.

The loan transferred to the special servicer in July 2020 for imminent default. Cash management has been implemented and a receiver is in place. The servicer is evaluating options and plans to begin marketing the asset for sale once the redevelopment plans for the former Boston Store site are determined. Fitch's loss expectations remain high due to the regional mall asset type and secondary market location. Fitch modeled a base case loss of 65%, which reflects a 25.7% implied cap rate to the YE 2020 NOI.

Defeasance/Improved Credit Enhancement (CE) Since Issuance: Seven loans (34.8%) are fully defeased, including the largest loan in the pool, 589 Fifth Avenue. As of the April 2022 distribution date, the pool's aggregate balance has been reduced by 50.6% to $567.8 million from $1.148 billion at issuance. The pool has experienced approximately $17.9 million (1.6% of original pool balance) in realized losses to date from the liquidation of a specially serviced regional mall asset in February 2021 and a mixed-use property in May 2021. Interest shortfalls are currently affecting class G.

Pool Concentration; Alternative Loss Consideration: There are 27 loans remaining in the pool. Due to the increasing concentration of the pool, Fitch performed a look-through analysis in addition to its base case scenario, which grouped the remaining loans based on the likelihood of repayment. The ratings and Outlooks reflect this analysis in addition to a scenario in which the two specially serviced regional malls are the only remaining loans in the pool.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative rating action/downgrade:

Sensitivity factors that lead to downgrades include an increase in pool-level losses from underperforming or specially serviced loans/assets. Downgrades to classes A-4, A-S, A-SB and interest only X-A are not likely due to the position in the capital structure, but may occur should interest shortfalls affect these classes.

Downgrades to classes B, C and D are possible should expected losses for the pool increase significantly, loans fail to repay at their respectively maturities and/or both the Meadows Mall and Southridge Mall loans incurring losses that are higher than anticipated. Downgrades to distressed classes E, F and G would occur as losses are realized and/or become more certain.

Fitch has identified both a baseline and a worse-than-expected, adverse stagflation scenario based on fallout from the Russia-Ukraine war whereby growth is sharply lower amid higher inflation and interest rates; even if the adverse scenario should play out, Fitch expects virtually no impact on ratings performance, indicating very few rating or Outlook changes. However, for some transactions with concentrations in underperforming retail exposure, the ratings impact may be mild to modest, indicating some changes on sub-investment grade notes.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

Upgrades are currently not expected given the retail outlook on regional malls and uncertainty surrounding the resolution of the Meadows Mall and Southridge Mall loans. Sensitivity factors that could lead to upgrades of classes B, C and D would include stable to improved asset performance and better than expected outcomes on the FLOCs, particularly on the regional mall FLOCs. Classes would not be upgraded above 'Asf' if there were likelihood of interest shortfalls.

Best/Worst Case Rating Scenario

International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.

Additional information is available on www.fitchratings.com

PARTICIPATION STATUS

The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.

APPLICABLE CRITERIA

Global Structured Finance Rating Criteria (pub. 26 Oct 2021) (including rating assumption sensitivity)

Structured Finance and Covered Bonds Counterparty Rating Criteria (pub. 04 Nov 2021)

North America and Asia-Pacific Multiborrower CMBS Surveillance Criteria (pub. 09 Apr 2022) (including rating assumption sensitivity)

APPLICABLE MODELS

Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).

CMBS Conduit Surveillance Model, v1.20.0 (1)

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