Fitch Affirms CMLS Issuer Corp.'s Commercial Mtge Pass-Thru Ctfs, Series 2014-1

CHICAGO--()--Fitch Ratings affirms all rated classes of CMLS Issuer Corp.'s (CMLSI) commercial mortgage pass-through certificates, series 2014-1. A detailed list of rating actions follows at the end of this release. All currencies are in Canadian dollars (CAD).

KEY RATING DRIVERS

The affirmations are due to the overall stable performance of the underlying collateral pool since issuance. There have been no delinquent or specially serviced loans since issuance. The certificates represent the beneficial ownership in the trust, primary assets of which are 37 Canadian loans secured by 41 commercial properties having an aggregate principal balance of approximately $277.4 million as of the November 2015 distribution.

The ratings reflect strong historical Canadian commercial real estate loan performance, including a low delinquency rate and low historical losses of less than 0.1%, as well as positive loan attributes, such as short amortization schedules, recourse to the borrower, and additional guarantors. For more information on prior Canadian CMBS securitizations, see Fitch Research's 'Canadian CMBS Default and Loss Study,' dated October 2013, available on Fitch's website at www.fitchratings.com.

The pool has a weighted average amortization term of 24.8 years, which represents faster amortization than U.S. conduit loans. There are no partial or full interest-only loans. The pool's scheduled maturity balance represents a paydown of 22.3% of the November 2015 balance and 24.1% from the issuance balance. Of the pool, 82.6% of the loans feature full or partial recourse to the borrowers and/or sponsors.

The largest loan in the pool is the Zzen Portfolio (15.8% of the pool), which is secured by five cross-collateralized and cross-defaulted loans, secured by three industrial properties, one hotel, and an unanchored shopping center in Vaughan, ON. The loans are full recourse to the borrower. The loan is sponsored by Vic De Zen, Dominic D'Amico, and Fortunato Bordin. The hotel is a Westin Element that was developed in 2013.

The second largest loan is the Royal Henley Retirement Residence (8.1% of the pool), which is secured by a 118-unit senior housing community in St. Catharines, ON. The subject, which was constructed in 2010, is comprised of an 80%/20% split between independent living and assisted living units. Common area amenities include dining rooms, lounge areas, a fitness center, pool, cafe, and a salon and spa. As of the servicer-provided April 2015 rent roll, the property was 93.2% occupied.

RATING SENSITIVITIES

The Rating Outlooks on all classes remain 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 overall portfolio-level metrics. Additional information on rating sensitivity is available in the 'CMLSI 2014-1' (Nov. 14, 2014) new issue report, available at www.fitchratings.com.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following ratings:

--$129.8 million class A-1 at 'AAAsf'; Outlook Stable;

--$109.6 million class A-2 at 'AAAsf'; Outlook Stable;

--$6 million class B at 'AAsf'; Outlook Stable;

--$8.9 million class C at 'Asf'; Outlook Stable;

--$8.5 million class D at 'BBBsf'; Outlook Stable;

--$3.5 million class E at 'BBB-sf'; Outlook Stable;

--$2.8 class F at 'BBsf'; Outlook Stable;

--$2.8 million class G at 'Bsf'; Outlook Stable.

Fitch does not rate the interest-only class X or the $5.3 million non-offered class H.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Related Research

CMLSI 2014-1 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=815128

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=995927

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=995927

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Primary Analyst
Jeffrey Diliberto
Director
+1-312-368-3268
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Jeffrey Diliberto
Director
+1-312-368-3268
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com