NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 16 classes of J.P. Morgan Chase Bank, N.A. Commercial Mortgage Securities Trust, series 2014-C21 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are based on the stable performance of the underlying collateral pool. The stable performance reflects no material changes to pool metrics since issuance, therefore the original rating analysis was considered in affirming the transaction.
The pool's aggregate principal balance has been reduced by 0.93% to $1.25 billion from $1.26 billion at issuance. Fitch has designated three loans (1.8%) as Fitch Loans of Concern, two of which (1.1%) are specially serviced.
The largest specially-serviced loan (0.5% of the pool) is secured by an 81,000 SF office park consisting of 19 single-story buildings, located in Lockport, New York. The loan was in default at securitization due to the failure to establish a lockbox as required by the loan agreement. The borrower refused to fund monthly escrows designed to repay protective tax advances. A mortgage loan repurchase claim has been noticed to the loan originator to repurchase the loan or substitute a qualified replacement loan. As of March 2016, the property was 85% occupied.
The next specially-serviced loan (0.5% of the pool) is secured by a 96,200 SF office building located in Naperville, IL. Occupancy declined to 56% from 78% in 2014 after GM vacated in mid-2015. The loan transferred to special servicing after written notification was received from the borrower stating that they cannot continue debt service obligations. The borrower has put forth a preliminary discounted payoff (DPO) offer which is currently being evaluated. The servicer is dual tracking both negotiations with the borrower and potential foreclosure, depending on whether modification terms can be agreed upon.
The largest loan in the pool (8.2% of the pool) is secured by Phase I of Showcase Mall, a 182,037-sf retail and entertainment center located on Las Vegas Boulevard in Las Vegas, NV. The collateral comprises two buildings: the main building, with frontage on Las Vegas Boulevard, and a second building with no frontage that includes a 1,418-space parking garage and an eight-screen United Artist Theater (22.6% of collateral NRA). Per the December 2015 rent roll, 43% of the net rentable area (NRA) rolls in 2017. The loan is structured with a $3.5 million reserve, $2.5 million of which will be used for future retenanting costs. As of December 2015, occupancy was 93%.Fitch will continue to monitor the rollover over the next year.
The Outlook for all classes remains Stable. Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch affirms the following classes:
--$24.1 million class A-1 'AAAsf'; Outlook Stable;
--$25.5 million class A-2 'AAAsf'; Outlook Stable;
--$59.4 million class A-3 'AAAsf'; Outlook Stable;
--$325 million class A-4 'AAAsf'; Outlook Stable;
--$357.2 million class A-5 'AAAsf'; Outlook Stable;
--$82.5 million class A-SB 'AAAsf'; Outlook Stable;
--$949.9 million* class X-A 'AAAsf'; Outlook Stable;
--$90.1 million* class X-B 'AA-sf'; Outlook Stable;
--$69.5 million class A-S 'AAAsf'; Outlook Stable;
--$90.1 million class B 'AA-sf'; Outlook Stable;
--$45.8 million class C 'A-sf'; Outlook Stable;
--$205.5 million class EC 'A-sf'; Outlook Stable;
--$25.3 million* class X-C 'BBsf'; Outlook Stable;
--$74.3 million class D 'BBB-sf'; Outlook Stable;
--$25.3 million class E 'BBsf'; Outlook Stable;
--$17.4 million class F 'Bsf'; Outlook Stable.
* Notional amount and interest only.
Class A-S, class B, and class C certificates may be exchanged for a related amount of class EC certificates, and class EC certificates may be exchanged for class A-S, class B, and class C certificates.
Class X-C, D, E and F are privately placed pursuant to Rule 144A.
Fitch does not rate the $56.9 million NR class, or the $74.3 million interest-only class X-D.
Additional information is available at www.fitchratings.com.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14
Criteria for Rating Caps and Limitations in Global Structured Finance
Transactions (pub. 28 May 2014)
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)
JPMBB Commercial Mortgage Securities Trust 2014-C21 -- Appendix
Dodd-Frank Rating Information Disclosure Form