KBRA Downgrades Eight Ratings and Affirms All Other Ratings for CGCMT 2014-GC25
2 Aug 2024 | New York
KBRA downgrades the ratings of eight classes of certificates and affirms all other outstanding ratings of CGCMT 2014-GC25, a $390.5 million CMBS conduit transaction. Additionally, the ratings of two classes are withdrawn due to the reduction of the rated balances to zero as of July 2024. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA’s estimated losses for four K-LOCs (44.4%), all of which are office properties. The ratings actions also consider deleveraging of the transaction from loan payoffs, amortization and defeasance, as well as, the risk of interest shortfalls reaching higher in the capital structure as the special servicer resolves the specially serviced assets and those loans unable to payoff at their upcoming maturity.
As of the July 2024 remittance period, there are three specially serviced loans (37.4%), of which one (7.1%) in NP and one is 30 days delinquent (0.4%). KBRA has identified eight loans (47.4%) as K-LOCs. This includes five of the top 10 loans (45.9%):
- Bank of America Plaza (largest, 28.2% of the pool balance, 35.4% estimated loss severity)
- The Pinnacle at Bishop's Woods (2nd largest, 7.2%, 43.8%)
- Stamford Plaza Portfolio (3rd largest, 7.1%, 58.6%)
- Arrowhead Properties (7th largest, 2.1%, 43.6%)
- Delavan Crossing (8th largest, 1.5%)
The three remaining K-LOCs do not have estimated losses and represent 1.5% of the pool balance.
Details concerning the classes with ratings changes are as follows:
- Class C to BBB (sf) from A- (sf)
- Class PEZ to BBB (sf) from A- (sf)
- Class D to CCC (sf) from BBB- (sf)
- Class E to CC (sf) from B (sf)
- Class F to C (sf) from CCC (sf)
- Class X-D to CCC (sf) from BBB- (sf)
- Class X-E to CC (sf) from B (sf)
- Class X-F to C (sf) from CCC (sf)
Ratings Withdrawn:
- Class A-3 to WR from AAA (sf)
- Class A-AB to WR from AAA (sf)
To access rating and relevant documents, click here.
Click here to view the report.
Related Publication
Methodologies
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
- CMBS: North American CMBS Multi-Borrower Rating Methodology
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology