NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 13 classes of Deutsche Bank Securities, Inc.'s COMM 2014-CCRE21 Mortgage Trust pass-through certificates. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The affirmations are due to the overall stable performance of the underlying collateral pool since issuance. Fitch reviewed the most recently available financial performance data for the pool, as well as updated rent rolls for the top 15 loans, which represent 62.3% of the transaction. Of the loans in the pool, 29.2% reported year-end (YE) 2014 financials and 36.9% reported second quarter 2015 (2Q15) financials.
As of the November 2015 distribution date, the pool's aggregate principal balance has been reduced by 0.5% to $820.8 million from $824.8 million at issuance. Currently there are no delinquent, specially serviced or defeased loans.
Two loans, Oaks of Arlington (0.8% of the pool) and Holiday Inn Express Brookhaven (0.7%), are on the servicer watchlist due to performance falling below issuance expectations. Additionally, the latter of the two loans became 30+ days delinquent for the May 2015 pay period; however, the loan has since been brought current. Fitch is monitoring the performance of these two loans.
The largest loan in the pool, One Memorial Drive (9.8%), is a 10-year interest-only (IO) loan. The whole loan consists of six pari passu notes. Only the A1 and A2 notes are included in this transaction. The collateral is a class A, 17-story 369,436-sf office building located in Cambridge, MA. The property was built in 1985 and renovated in 2008. The largest tenants include Microsoft (46.2% of net leasable area) and Intersystems (43.0% of net rentable area [NRA]). Microsoft's lease expires at the end of 2017 and Intersystems lease expires in March 2018. If Microsoft does not exercise its lease option by the end of September 2016, or Intersystems fails to extend its lease by March 2017, a cashflow sweep begins. Sponsored by Boston Office Economic Joint Venture LP and Boston Office Voting Joint Venture LP, the loan is performing in-line with issuer underwritten expectations. As of June 2015 rent roll, the property was 97% occupied, compared to 97.9% at issuance. The servicer-reported 2Q15 debt service coverage ratio (DSCR) was 2.10x, compared to 2.07x at issuance.
The second largest loan, Loews Miami Beach Hotel (7.3%), is a 10-year IO loan. The collateral is a 790-key, full-service, luxury hotel located in the Art Deco District of Miami Beach, FL. Built in 1998 and renovated from 2008 to 2010, the property consists of an 18-story main tower building as well as the historically landmarked six-story St. Moritz tower. The whole loan consists of three pari passu notes. Only the A3 note is included in the transaction. Sponsored by Loews Hotels Holding Corporation, the loan is performing in line with issuer underwritten expectations. The servicer-reported YE 2014 DSCR was 3.40x, compared to 3.28x at underwriting.
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-CCRE21 Mortgage Trust (March 2, 2015) New Issue Report' available at www.fitchratings.com.
Fitch has affirmed the following ratings:
--$25.9 million class A-1 at 'AAAsf'; Outlook Stable;
--$91.2 million class A-2 at 'AAAsf'; Outlook Stable;
--$49.3 million class A-SB at 'AAAsf'; Outlook Stable;
--$407 million class A-3 at 'AAAsf'; Outlook Stable;
--$52.6 million class A-M at 'AAAsf'; Outlook Stable;
--$46.4 million class B at 'AA-sf'; Outlook Stable;
--$0 class PEZ at 'A-sf'; Outlook Stable;
--$37.1 million class C at 'A-sf'; Outlook Stable;
--$40.2 million class D at 'BBB-sf'; Outlook Stable;
--$8.2 million class E at 'BB+sf'; Outlook Stable.
--Interest Only class X-A at 'AAAsf'; Outlook Stable;
--Interest Only class X-B 'A-sf'; Outlook Stable;
--Interest Only class X-C 'BBB-sf'; Outlook Stable.
Fitch does not rate the classes F, G, H and J, or Interest-Only classes X-D, X-E and X-F certificates.
Additional information is available at www.fitchratings.com.
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)
COMM 2014-CCRE21 Mortgage Trust -- Appendix
Dodd-Frank Rating Information Disclosure Form