Fitch Affirms CGCMT 2014-GC25

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 11 classes of Citigroup Commercial Mortgage Trust (CGCMT) commercial mortgage pass-through certificates series 2014-GC25. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations of CGCMT 2014-GC25 are based on the stable performance of the underlying collateral since issuance. As of the October 2015 distribution date, the pool's aggregate principal balance has been reduced by 0.45% to $838.2 million from $842 million at issuance. The pool has experienced no realized losses to date. There are currently no delinquent or specially serviced loans, and no loans are defeased. De minimis interest shortfalls are currently affecting the non-rated class G.

The largest loan in the pool (13.1%) is secured by Bank of America Plaza, a 1.4 million square foot (sf) office building located in downtown Los Angeles. The largest tenants include The Capital Group Companies (22.6% of the net rentable area [NRA]), Shepard, Mullin, Richter, & Hampton LLC (13% NRA) and Bank of America (11.4% NRA). As of June 2015, the property was 92% occupied and reported a net operating income (NOI) debt service coverage ratio (DSCR) of 2.37x.

The second largest set of loans in the pool (7.34% of the pool) consists of five cross-collateralized and cross-defaulted loans secured by five anchored or unanchored retail properties located in CA, ND, or CO. Anchors include Office Depot, Stater Bros, Sears, Chuck E. Cheese, Trader Joes, and King Soopers. The combined occupancy for the five properties reported at 93%. The largest of the loans is the $20.4 million Orange Plaza Shopping Center loan (2.4% of the pool), secured by a 132,000 sf shopping center in Redlands, CA. The property was 99.8% occupied per the December 2014 rent roll and is anchored by Office Depot (29% NRA) and Trader Joes (15% NRA) and shadow-anchored by Vons grocery store.

The third largest loan in the pool (7.2%) is the Fenley office portfolio, secured by 11 office properties totaling 922,903 sf located throughout Louisville, KY. The portfolio is highly granular and at issuance was leased to 76 tenants of various industries, including financial, insurance and legal. The portfolio's largest tenant, ADP Inc. (previously 5.2% of the total NRA), had vacated at the end of its lease term in July 2015. According to the servicer, a new 10-year lease has been executed for 64% of the vacated space and a letter of intent is outstanding for the remainder of the former ADP space. As of June 2015 (prior to ADP Inc. vacancy) occupancy reported at 94%, with NOI DSCR at 2.12x.

RATING SENSITIVITIES

The Rating Outlooks remain Stable for all classes due to stable performance of the pool since issuance. Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics.

Additional information on rating sensitivity is available in the report 'Citigroup Commercial Mortgage Trust 2014-GC25' (July 28, 2015), available at www.fitchratings.com.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following ratings:

--$26.8 million class A-1 at 'AAAsf'; Outlook Stable;

--$9.8 million class A-2 at 'AAAsf'; Outlook Stable;

--$235 million class A-3 at 'AAAsf'; Outlook Stable;

--$248.8 million class A-4 at 'AAAsf'; Outlook Stable;

--$65.2 million class A-AB at 'AAAsf'; Outlook Stable;

--$634.7 million* class X-A at 'AAAsf'; Outlook Stable;

--$52.6 million* class X-B at 'AA-sf'; Outlook Stable;

--$45.3 million a class A-S at 'AAAsf'; Outlook Stable;

--$52.6 million a class B at 'AA-sf'; Outlook Stable;

--$40.0 million a class C at 'A-sf'; Outlook Stable.

--$137.9 million a class PEZ at 'A-sf'; Outlook Stable;

*Notional amount and interest-only.

a Class A-S, B, and C certificates may be exchanged for class PEZ certificates, and class PEZ certificates may be exchanged for up to the full certificate principal amount of the class A-S, B and C certificates.

Fitch does not rate the class D, E, F, G, X-D, X-E, X-F, or X-G certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Related Research

Citigroup Commercial Mortgage Trust 2014-GC25 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867570

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=992383

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=992383

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151015006648/en/

Fitch Ratings
Primary Analyst
Benson Thomas, +1-212-908-0645
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Britt Johnson, +1-312-606-2341
Senior Director
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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