KBRA Maintains Watch Downgrade Status for Six Ratings and Withdraws Five Ratings of JPMBB 2014-C24

KBRA is maintaining its Watch Downgrade status for six ratings of JPMBB 2014-C24, a CMBS conduit transaction. Additionally, the ratings for the remaining five IO classes are being withdrawn in accordance with KBRA’s Methodology for Rating Interest-Only Certificates In CMBS Transactions, as there are only ten loans remaining in the pool. There were no principal losses or interest shortfalls reported on the withdrawn rated securities during their life. Of the five IO classes being withdrawn, four of them previously had Watch Downgrade Status.

We initially placed the ratings on Watch Developing on December 16, 2024 due to an increase in the concentration of specially serviced assets and an increase in interest shortfalls since our last surveillance review in August 2024. Currently interest shortfalls are impacting up to and including the Class B certificates. KBRA also considered the likelihood of interest shortfalls continuing and reaching higher in the capital structure during the resolution of the specially serviced assets and the eight assets (73.7%) that remain in the pool past their maturity date. KBRA will continue to monitor the transaction and the underlying loans’ performance and will seek to resolve or update the Watch Downgrade status within 90 days.

As of the February 2024 remittance period, there are eight specially serviced assets (73.7% of the pool balance), of which two (28.5%) are REO, four (22.3%) are in foreclosure and one (3.8%) is matured non-performing.

Details concerning the classes that had withdrawn ratings are as follows:

To access ratings and relevant documents, click here.

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Methodologies