KBRA Downgrades Five Ratings and Affirms All Other Ratings for JPMBB 2014-C23
13 Sep 2024 | New York
KBRA downgrades the ratings of five classes and affirms all other outstanding ratings for JPMBB 2014-C23, a $437.5 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses on three K-LOCs (19.3% of the pool balance). The ratings also consider the deleveraging of the transaction from loan payoffs, amortization, and defeasance.
As of the August 2024 remittance period, there are four specially serviced assets (42.3% of the pool balance), of which one (2.0%) is REO, while the remaining three (40.3%) are non-performing matured balloon loans. KBRA identified seven K-LOCs (76.4%), including the specially serviced assets. Of the K-LOCs, four (29.3%) have estimated losses. The K-LOCs include:
- 17 State Street (largest, 24.0% of the pool balance)
- Columbus Square Portfolio (2nd largest, 21.8%)
- Stevens Center Business Park (3rd largest, 11.0%, 4.6% estimated loss severity)
- Beverly Connection (5th largest, 10.0%, 11.0%)
- Memphis Forum (7th largest, 6.3%, 20.3%)
- The Duncan Center (9th largest, 2.0%, 63.2%)
- Crossroads Center (10th largest, 1.4%)
Details concerning the classes with rating changes are as follows:
- Class D to BB- (sf) from BBB- (sf)
- Class E to B- (sf) from BB (sf)
- Class F to CCC (sf) from B- (sf)
- Class X-C to B- (sf) from BB (sf)
- Class X-D to CCC (sf) from B- (sf)
To access rating and relevant documents, click here.
Click here to view the report.
Related Publication
Methodologies
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology