KBRA Upgrades One Rating, Downgrades Four Ratings, and Affirms All Other Outstanding Ratings for COMM 2014-CCRE19
7 Jun 2024 | New York
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.
Related Publication
Methodologies
- CMBS: U.S. CMBS Multi-Borrower Rating Methodology
- CMBS: U.S. CMBS Single Borrower & Large Loan Rating Methodology
- CMBS: U.S. CMBS Property Evaluation Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology