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KBRA Upgrades One Rating, Downgrades Four Ratings, and Affirms All Other Outstanding Ratings for COMM 2014-CCRE19

7 Jun 2024   |   New York

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KBRA upgrades the rating of one class of certificates, downgrades the ratings of four classes of certificates, and affirms all other outstanding ratings for COMM 2014-CCRE19, a $360.1 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since KBRA’s last rating adjustments in August 2020. However, the upgraded Class B rating reflects the increased certificate C/E levels due to deleveraging from loan payoffs and amortization.

As of the May 2024 remittance period, there are two specially serviced assets (12.7% of the pool balance), excluding the 866 Third Avenue Retail loan (11.0%) that was reported to have transferred to the special servicer in May 2024 due to imminent maturity default. KBRA identified eight K-LOCs (38.1%), including the specially serviced assets. The K-LOCs include five of the top 10 loans (32.4%):

  • 866 Third Avenue Retail (largest, 11.0% of the pool balance, 30.5% estimated loss severity)
  • Clinton Square (3rd largest, 7.3%, 42.1%)
  • 140 Second Street (6th largest, 5.4%, 67.8%)
  • Century Plaza (7th largest, 5.4%)
  • Tower23 Hotel (10th largest, 3.3%, 38.1%)

Three other K-LOCs have estimated losses:

  • Gateway Oaks Office (2.1%, 9.4%)
  • San Francisco Boutique Hotel Portfolio (2.0%, 38.8%)
  • Cypress Shopping Center (1.6%, 39.2%)

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 91.6%, compared to 101.8% at KBRA’s last ratings change in August 2020 and 101.3% at securitization. The KDSC is 1.29x, compared to 1.45x at KBRA’s last ratings change and 1.64x at securitization.

Details concerning the classes with rating changes are as follows:

  • Class B to AA+ (sf) from AA (sf)
  • Class E to BB- (sf) from BB (sf)
  • Class F to CCC (sf) from BB- (sf)
  • Class G to CC (sf) from B- (sf)
  • Class X-C to CCC (sf) from BB- (sf)

To access rating and relevant documents, click here.

Click here to view the report.

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Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1004641

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