KBRA Downgrades Six Ratings, Withdraws One Rating, and Affirms All Other Ratings for JPMBB 2014-C26
11 Oct 2024 | New York
KBRA downgrades the ratings of six classes, withdraws the rating of one class and affirms all other outstanding ratings for JPMBB 2014-C26, a $744.4 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses on six of the K-LOCs (23.0% of the pool balance). However, the top of the transaction’s capital structure has benefitted from deleveraging from loan payoffs, amortization, and defeasance. The rating withdraw on Class A-3 follows the reduction of its principal balance to zero according to the September 2024 remittance report.
As of the September 2024 remittance period, there are six specially serviced assets (40.0%), of which, one (6.2%) is REO and one (3.7%) is 90+ days delinquent. KBRA identified 12 K-LOCs (58.0%), including the specially serviced assets. These include:
Eight top 10 assets (50.0%), of which, three (17.7%) have an estimated loss:
- 500 Fifth Avenue (largest, 13.4% of the pool balance)
- 1515 Market (2nd largest, 7.9%, 32.9% estimated loss severity)
- Heron Lakes (3rd largest, 6.2%, 63.5%)
- St. Louis Premium Outlets (4th largest, 5.8%)
- The Outlet Shoppes of the Bluegrass (5th largest, 4.8%)
- Holiday Inn & Suites Across from Universal Studios (7th largest, 4.3%)
- Hyatt Regency Lexington (8th largest, 4.0%)
- International Corporate Center (10th largest, 3.7%, 35.8%)
Three additional K-LOCs with estimated losses (3.2%):
- Marriott Fort Lauderdale (3.0%, 10.6%)
- Hilton Garden Inn Westhampton (1.4%, 52.8%)
- Candlewood Suites Indianapolis Airport (0.9%, 21.2%)
The remaining K-LOC does not have an estimated loss and represents 2.8% of the pool balance.
Details concerning the classes with ratings changes are as follows:
- Class A-3 to WR from AAA (sf)
- Class D to B from BBB- (sf)
- Class E to CC (sf) from B (sf)
- Class F to C (sf) from CCC (sf)
- Class X-D to B from BBB- (sf)
- Class X-E to CC (sf) from B (sf)
- Class X-F to C (sf) from CCC (sf)
To access rating and relevant documents, click here.
Click here to view the report.