NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 16 classes of Deutsche Bank Securities, Inc.'s (COMM) commercial mortgage pass-through certificates series 2014-CCRE17. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are due to overall stable performance of the underlying collateral pool. Fitch reviewed the most recent financial performance data and rent rolls for the top 15 loans in the transaction where available by the 17g5 provider.
As of the April 2015 distribution date, the pool's aggregate principal balance has been reduced by 0.5% to $1.19 billion from $1.19 billion at issuance. No loans are in special servicing.
The largest loan in the pool, Bronx Terminal Market (11.8%) of the pool is secured by a 912,333-sf, multilevel retail power center located in Bronx, NY. The property was developed by the sponsor in 2009 and consists of two towers, which are connected via a six-level parking garage. The largest tenants are Target (20.7% NRA), BJs (14.3% NRA), and Home Depot (13.7% NRA). As of February 2015, the property is 99.3% occupied. The most recent servicer reported debt-service coverage ratio (DSCR) is 1.64x as of year-end (YE) 2014.
The second largest loan in the pool, 25 Broadway (11%) of the pool is secured by a 23-story, 956,554-sf office building located in the Financial District of New York City. The property, also known as the Cunard Building, was constructed from 1917 - 1921 as the headquarters for the Cunard Steamship Company, and in 1995 was designated a landmark by the New York City Landmarks Preservation Commission. The largest tenants are Claremont Preparatory School LLC (19%), expiration Aug. 31, 2020; Deloitte & Touche (14%), expiration Dec. 31, 2016; and Teach for America (14%), expiration 1/31/2032. As of December 2014, the property is 95.4% occupied.
Per the sub servicer, the most recent reported 3Q 2014 net cash flow (NCF) DSCR is 1.06x. The borrower is currently in a period of free rent for the following tenants, 25 Broadway Ballroom (29,972 sqft, 3.13% NRA, 0% EGI), WW 25 Broadway (129,485 sqft, 13.54% NRA, 0% EGI) and Teach for America (129,827 sqft, 13.57% NRA, 0% EGI). At closing, the borrower placed $10,622,967 in a Free Rent Reserve, to date $8,530,150 have been dispersed from the reserve account. The NCF DSCR would increase to 1.76x if these reserves were included as revenue.
RATING SENSITIVITIES
The Rating Outlook for all classes remains Stable. Due to the recent issuance of the transaction and stable 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 'COMM 2014-CCRE17 Mortgage Trust, Series 2014-C17' (Apr. 23, 2014) available at 'www.fitchratings.com'.
Fitch affirms the following classes as indicated:
--$43.4 million class A-1 at 'AAAsf'; Outlook Stable;
--$149 million class A-2 at 'AAAsf'; Outlook Stable;
--$12.4 million class A-3 at 'AAAsf'; Outlook Stable;
--$69.9 million class A-SB at 'AAAsf'; Outlook Stable;
--$220 million class A-4 at 'AAAsf'; Outlook Stable;
--$333.7 million class A-5 at 'AAAsf'; Outlook Stable;
--Interest-only class X-A at 'AAAsf'; Outlook Stable;
--$65.6 million class A-M at 'AAAsf'; Outlook Stable;
--$82 million class B at 'AA-sf'; Outlook Stable;
--$199.7 million class PEZ at 'A-sf'; Outlook Stable;
--$52.2 million class C at 'A-sf'; Outlook Stable;
--Interest-only X-B at 'BBB-sf'; Outlook Stable;
--$50.7 million class D at 'BBB-sf'; Outlook Stable;
--$14.9 million class E at 'BBB-sf'; Outlook Stable;
--Interest-only class X-C at 'BB-sf'; Outlook Stable;
--$29.8 million class F at 'BB-sf'; Outlook Stable.
*Class A-M, B and C certificates may be exchanged for PEZ certificates, and class PEZ certificates may be exchanged for class A-M, B and C certificates. Fitch does not rate the class X-D, G, and H 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:
--'COMM 2014-CCRE17 Mortgage Trust -- Appendix' (Apr. 23, 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 - Effective from 4 August 2014 to 31 March 2015
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=984549
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.