CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 16 classes of Citigroup Commercial Mortgage Trust commercial mortgage pass-through certificates series 2014-GC21. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations reflect the transaction's stable performance since issuance. As of the April 2015 distribution date, the pool's aggregate principal balance has been reduced by 14.9% to $1.03 billion from $1.21 billion at issuance. No loans are defeased. Interest shortfalls are currently affecting class G. 30% of the loans reported partial year 2014 financials, which were annualized for analysis purposes.
The largest loan in the pool is the Maine Mall loan (12.1% of the pool), which is secured by a 1.2 million square foot (sf) regional mall located approximately six miles southwest of Portland, ME. The mall has four anchors: Macy's (non-collateral), Sears (non-collateral), Bon Ton, and JCPenney. There are also junior anchors Best Buy, Sports Authority, XXI Forever, and Old Navy. The mall also features the only Apple store in the state of Maine. The debt service coverage ratio (DSCR) was reported to be 3.67x as of year-end (YE) 2014. Occupancy was reported to be 98%, which is in line with the occupancy at issuance.
The next largest loan in the pool is the Newcastle Senior Housing Portfolio loan (9.9%). The loan is collateralized by 26 independent living senior housing facilities totaling 3,002 units. Located across 14 states, the portfolio is 100% private pay and offers no assisted living functions. As of September 2014, the DSCR and occupancy was reported to be 1.96x and 93%, respectively, compared to 1.59x and 91% at issuance.
The third largest loan in the pool is the Greene Town Center loan (4.6%), which is secured by an open-air, mixed-use lifestyle center located in Beavercreek, OH, which is roughly ten miles southwest of Dayton. The collateral consists of retail (566,634 sf), office (143,343 sf) and residential space (206 units totaling 199,248 sf). Built in phases from 2006-2008, the property is anchored by Von Maur (ground lease), Urban Active Fitness (LA Fitness) and Nordstrom Rack. The office and residential portions of the property is located above the retail space on the second floor of the buildings. The DSCR was reported to be 1.86x as of September 2014. Occupancy was reported to be 90%, which is in line with the occupancy at issuance.
The Rating Outlook for all classes remains Stable due to stable collateral 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 'CGCMT 2014-GC21 (July 16, 2014), available at 'www.fitchratings.com'.
Fitch affirms the following classes as indicated:
--$45.1 million class A-1 at 'AAAsf'; Outlook Stable;
--$63.2 million class A-2 at 'AAAsf'; Outlook Stable;
--$9.6 million class A-3 at 'AAAsf'; Outlook Stable;
--$240 million class A-4 at 'AAAsf'; Outlook Stable;
--$291.4 million class A-5 at 'AAAsf'; Outlook Stable;
--$71.6 million class A-AB at 'AAAsf'; Outlook Stable;
--$779.4* million class X-A at 'AAAsf'; Outlook Stable;
--$115.7* million class X-B at 'AA-sf'; Outlook Stable;
--$58.5 million class A-S at 'AAAsf'; Outlook Stable;
--$70.2 million class B at 'AA-sf'; Outlook Stable;
--$0 class PEZ at 'A-sf'; Outlook Stable;
--$45.5 million class C at 'A-sf'; Outlook Stable;
--$24.7* million class X-C at 'BBsf'; Outlook Stable;
--$50.7 million class D at 'BBB-sf'; Outlook Stable;
--$24.7 million class E at 'BBsf'; Outlook Stable;
--$13 million class F at 'Bsf'; Outlook Stable.
*Notional and interest-only.
Fitch does not rate the class G or X-D certificates. Class A-S, B, and C certificates may be exchanged for a related amount of class PEZ certificates, and class PEZ certificates may be exchanged for class A-S, B, and C 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:
--'CGCMT 2014-GC21 - Appendix' (July 16, 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' (March 31, 2015);
--Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (May 28, 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
Criteria for Rating Caps and Limitations in Global Structured Finance Transactions
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria