KBRA Downgrades One Rating of COMM 2014-CCRE20 to D (sf) Following Realization of Principal Losses

KBRA downgrades the rating of the Class E certificate to D (sf) from CC (sf) for COMM 2014-CCRE20, a CMBS conduit transaction, following realized losses incurred on the class. To date the Class E has taken approximately $517,000 in realized losses (1.9% of original certificate balance). To date the losses on the Class E have generally come from the reimbursement of advances.

There are $68.5 million in cumulative principal losses on the transaction, as of the January 2025 remittance report. All the certificates below class E have already been reduced to zero from a combination of realized losses from liquidation of assets as well as recovery of advances. Of the cumulative loss to date, reimbursement of non-recoverable advance from principal total $11.8 million. Much of the reimbursement is attributable to the Harwood Center, a non-recoverable REO asset (largest, 41.7% of the current pool balance). Along with the non-recoverable advances, the transaction has incurred losses from the liquidation of four previously specially serviced assets: Two Park Central ($11.9 million loss, December 2020 liquidation), Springhill Suites Bolingbrook ($2.0 million, May 2021), DoubleTree Beachwood ($18.5 million, October 2021), and Crowne Plaza Houston Katy Freeway ($23.9 million, March 2023).

KBRA's other outstanding transaction ratings are unchanged at this time. The applied loss this month is in line with KBRA's estimated losses based on KBRA's most recent surveillance review from September 2024.

Rating Sensitivities

Future rating actions will be dependent upon the ongoing assessment of the likelihood of ultimate payment of principal and accrued interest on the rated securities. 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.

For additional details, please see the COMM 2014-CCRE20 September 2024 Surveillance Report linked below.

To access ratings and relevant documents, click here.

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