NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned the following ratings and Rating Outlooks to Citigroup Commercial Mortgage Trust's 2014-GC19 Commercial Mortgage Pass-Through Certificates:
--$49,387,000 class A-1 'AAAsf'; Outlook Stable;
--$125,716,000 class A-2 'AAAsf'; Outlook Stable;
--$215,000,000 class A-3 'AAAsf'; Outlook Stable;
--$246,848,000 class A-4 'AAAsf'; Outlook Stable;
--$74,468,000 class A-AB 'AAAsf'; Outlook Stable;
--$777,479,000a class X-A 'AAAsf'; Outlook Stable;
--$50,816,000a class X-B 'AA-sf'; Outlook Stable;
--$66,060,000c class A-S 'AAAsf'; Outlook Stable;
--$50,816,000c class B 'AA-sf'; Outlook Stable;
--$167,692,000c class PEZ 'A-sf'; Outlook Stable;
--$50,816,000c class C 'A-sf'; Outlook Stable;
--$21,596,000ab class X-C 'BBsf'; Outlook Stable;
--$54,627,000b class D 'BBB-sf'; Outlook Stable;
--$21,596,000b class E 'BBsf'; Outlook Stable;
--$11,434,000b class F 'Bsf'; Outlook Stable.
(a) Notional amount and interest-only.
(b) Privately placed pursuant to Rule 144A.
(c) The class A-S, B and C certificates may be exchanged for class PEZ certificates, and class PEZ certificates may be exchanged for the class A-S, B and C certificates.
Fitch does not rate the $49,545,707 class G or the $60,979,707 interest-only class X-D.
The classes above reflect the final ratings and deal structure. The certificates represent the beneficial ownership in the trust, primary assets of which are 78 loans secured by 128 commercial properties having an aggregate principal balance of approximately $1.016 billion as of the cutoff date. The loans were contributed to the trust by Citigroup Global Markets Realty Corp., Goldman Sachs Mortgage Company, MC-Five Mile Commercial Mortgage Finance LLC, Cantor Commercial Real Estate Lending, L.P., The Bancorp Bank, Rialto Mortgage Finance, LLC, and RAIT Funding, LLC.
Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 72.9% of the properties by balance and cash flow analysis and asset summary reviews on 80.5% of the pool.
KEY RATING DRIVERS
High Fitch Leverage: The pool's Fitch debt service coverage ratio (DSCR) and loan to value (LTV) are 1.13x and 106.4%, respectively, worse than the 2013 and 2012 averages of 1.29x and 101.6%, and 1.24x and 97.2%, respectively.
Above-Average Property Quality: Fitch assigned property quality grades of 'A-' or better to two of the 10 largest loans in the pool, which represent 15% of the balance of properties inspected by Fitch. Furthermore, property quality grades of 'B+' or better were assigned to 50% of the balance of properties inspected by Fitch.
Property Type Diversity: The pool is more diverse by property type than recent transactions, with the largest property type in the pool being retail properties at 26.8%, followed by multifamily at 20.9%, office at 18.1%, mixed use at 17.7% and independent living at 10.0% of the pool. No other property type comprises more than 4.9% of the pool.
Limited Amortization: The pool is scheduled to amortize by 13.1% of the initial pool balance prior to maturity. The pool's concentration of partial interest loans (38.7%), which includes five of the 10 largest loans, is higher than the 2013 average (34.0%). However, the pool's concentration of full-term interest-only loans (12.2%), including two of the 10 largest loans, is lower than the 2013 average (17.1%).
For this transaction, Fitch's net cash flow (NCF) was 3.41% below most recent net operating income (NOI; for properties for which the most recent NOI was provided, excluding properties that were stabilizing during this period). Unanticipated further declines in property-level NCF could result in higher defaults and loss severity on defaulted loans, and could result in potential rating actions on the certificates. Fitch evaluated the sensitivity of the ratings assigned to CGCMT 2013-GC19 certificates and found that the transaction displays slightly above-average sensitivity to further declines in NCF. In a scenario in which NCF declined a further 20% from Fitch's NCF, a downgrade of the junior 'AAAsf' certificates to 'BBB+sf' could result. In a more severe scenario, in which NCF declined a further 30% from Fitch's NCF, a downgrade of the junior 'AAAsf' certificates to 'BBB-sf' could result.
The presale report includes a detailed explanation of additional stresses and sensitivities in the Rating Sensitivity and Rating Stresses sections of the presale.
The master servicer will be Wells Fargo Bank, N.A., rated 'CMS1-' by Fitch. The special servicer will be Midland Loan Services a Division of PNC Bank, National Association, rated 'CSS1' by Fitch.
The presale report is available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions (Aug. 7, 2013);
--Global Structured Finance Rating Criteria (June 6, 2012);
--Criteria for Special-Purpose Vehicles in Structured Finance Transactions (May 30, 2012);
--U.S. Commercial Mortgage Servicer Rating Criteria (Feb. 18, 2011);
--U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (Dec. 18, 2012);
--Counterparty Criteria for Structured Finance and Covered Bonds (May 30, 2013).
Applicable Criteria and Related Research:
Counterparty Criteria for Structured Finance and Covered Bonds
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
Rating Criteria for U.S. Commercial Mortgage Servicers
Criteria for Special-Purpose Vehicles in Structured Finance Transactions - Effective 13 June 2011 to 30 May 2012
Global Structured Finance Rating Criteria
Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions