KBRA Downgrades One Rating to D (sf) Following Realization of Principal Losses and Withdraws One Rating for COMM 2014-LC15
27 Apr 2026 | New York
KBRA downgrades the rating of the Class F certificate to D (sf) from CC (sf) for COMM 2014-LC15, a $10.6 million CMBS conduit transaction, following realized losses incurred from the resolution of the Ithaca Hotel Portfolio asset ($8.0 million loan balance at issuance) as reflected in the April 2026 remittance report. The portfolio consists of two limited-service hotels located in Ithaca, New York. The loan was liquidated for net proceeds totaling $6.8 million. As of the April 2026 distribution date, liquidation expenses totaled $4.0 million, resulting in a loss of $3.3 million (41.8% loss severity of original balance), of which, $863,578 was applied to the transactions remaining certificate balance after $2.5 million in non-recoverable advances were dispersed to the trust. An appraisal dated July 2025 valued the portfolio at $8.1 million ($62,308 per key), which is 33.1% below the $12.1 million ($93,077 per key) valued at issuance.
According to the April 2026 remittance report, cumulative principal losses on the transaction totaled $34.0 million. Following the liquidation of the Ithaca Hotel Portfolio, the certificate balance for the Class G was reduced to zero and the principal balance of Class F was reduced to $10.6 million (8.2% of the original certificate balance). KBRA also withdraws the rating of the Class E certificate following the reduction of its principal balance to zero.
KBRA downgrades the following rating:
- Class F to D (sf) from CC (sf)
KBRA withdraws the following rating:
- Class E to WR (sf) from CCC (sf)
Rating Sensitivities
Future rating actions will be dependent upon the ongoing assessment of the timing and likelihood of ultimate payment of principal and accrued interest on the rated certificates. The assessment will consider the expected and actual losses on the remaining assets in the transaction, as well as, the magnitude and extent of interest shortfalls, if any,on the certificates.
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