KBRA Downgrades Six Ratings, Withdraws One Rating and Affirms All Other Ratings for JPMBB 2014-C24

KBRA downgrades the ratings of six classes of certificates, withdraws one rating and affirms all other ratings of JPMBB 2014-C24, a $756.0 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in KBRA's estimated losses primarily from three K-LOCs (24.0% of the pool balance). The rating actions also consider the transaction deleveraging from loan payoffs, amortization and defeasance.

As of the July 2024 remittance period, there are four specially serviced assets (16.9%), of which two (1.8%) are in foreclosure, and two (15.0%) are REO. KBRA identified eight K-LOCs (53.7%), including the specially serviced assets. Of the K-LOCs, four (25.4%) have estimated losses. The K-LOCs include:

Five of the top 10 assets (50.9%):

The Mall of Victor Valley (largest, 15.2%)
Columbus Square Portfolio (2nd largest, 11.7%)
635 Madison Avenue (3rd largest, 11.0% of total pool balance, 40.8% estimated loss severity)
North Riverside Park Mall (6th largest, 8.9%, 70.0%)
Hilton Houston Post Oak (8th largest, 4.1%, 9.4%)

One other K-LOC has an estimated loss:

Meriden Executive Park (1.4%, 57.9%)

Details concerning the classes with rating changes are as follows:

Class D to B- (sf) from BB- (sf)
Class E to CC (sf) from B- (sf)
Class F to C (sf) from CCC (sf)
Class X-B-2 to B- (sf) from BB- (sf)
Class X-C to CC (sf) from B- (sf)
Class X-D to C (sf) from CCC (sf)

KBRA Downgrades Six Ratings, Withdraws One Rating and Affirms All Other Ratings for JPMBB 2014-C24

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