Fitch Affirms COMM 2014-CCRE19

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 14 classes of Deutsche Bank Securities, Inc.'s COMM 2014-CCRE19 Commercial Mortgage Trust Pass-Through Certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect the stable performance of the underlying collateral pool since issuance. As of the July 2016 distribution date, the pool's aggregate principal balance has been reduced by 1.8% to $1.154 billion from $1.174 billion at issuance. Four loans (2.2% of the pool) are considered Fitch Loans of Concern, one of which is a specially serviced loan (0.4% of the pool).

The specially serviced loan is secured by Pheasant Ridge II Apartments; a 42 unit apartment community built in 2013 and located in Watford City, ND in the Bakken Shale region. The loan transferred to the special servicer in February 2016 due to payment default. Property operations have been impacted by the oil crisis and there has been a severe decline in occupancy at the property. Occupancy declined to 29% as of April 2016, which is down from 50% as of year-end (YE) 2015 and 100% as of YE 2014. Net operating income (NOI) debt service coverage ratio (DSCR) was 0.41x, 1.74x, and 2.40x as of year-to-date (YTD) April 2016, YE 2015, and YE 2014, respectively. The special servicer is working with counsel to seek the appointment of a receiver. Due to the size of the loan relative to the pool, Fitch anticipates impact in the event of loss to be minimal. Fitch will continue to monitor.

The largest loan in the pool (6.6% of the pool) is Bridgepoint Tower, a 273,764 square foot (sf) LEED-certified office building located in San Diego, CA. The 11-story tower was constructed in 2008 and is 100% occupied by Bridgepoint Education, Inc. (expiration February 2020). The sponsor developed the property as a multitenant property in 2008. Bridgepoint originally occupied 10 of 11 floors but ultimately expanded to take occupancy of the entire building. Performance has remained stable since issuance with a 2.15x NOI DSCR as of YE 2015.

The second largest loan in the pool (5.5% of the pool) is The Shoppes at Webb Gin, a 358,254 sf open air retail center consisting of 10 buildings located in Snellville, GA (metro Atlanta). The property has two anchors including Sprouts Farmers Market (7.3% net rentable area [NRA], expiration September 2029) and Barnes & Noble (7.4% NRA, expiration January 2019). Performance is stable with occupancy at 79% (in-line with issuance) and a 1.91x NOI DSCR as of YE 2015.

RATING SENSITIVITIES

The Stable Outlooks reflect stable pool performance since issuance. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's overall portfolio-level metrics. Additional information on rating sensitivity is available in the 'COMM 2014-CCRE19 Mortgage Trust' (Aug. 6, 2014) Presale report, 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 as indicated:

--$49.3 million class A-1 at 'AAAsf'; Outlook Stable;

--$168.7 million class A-2 at 'AAAsf'; Outlook Stable;

--$15.8 million class A-3 at 'AAAsf'; Outlook Stable;

--$94.3 million class A-SB at 'AAAsf'; Outlook Stable;

--$190 million class A-4 at 'AAAsf'; Outlook Stable;

--$283.1 million class A-5 at 'AAAsf'; Outlook Stable;

--$890,816,932a class X-A 'AAAsf'; Outlook Stable;

--$108,610,000a class X-B 'A-sf'; Outlook Stable;

--$89.5b million class A-M at 'AAAsf'; Outlook Stable;

--$55.8b million class B at 'AA-sf'; Outlook Stable;

--$52.8b million class C at 'A-sf'; Outlook Stable;

--$198.1b million class PEZ at 'A-sf'; Outlook Stable;

--$64.6 million class D at 'BBB-sf'; Outlook Stable;

--$23.5 million class E at 'BBsf'; Outlook Stable.

aNotional amount and interest only.

bClass A-M, B and C certificates may be exchanged for class PEZ certificates, and class PEZ certificates may be exchanged for class A-M, B, and C certificates.

Fitch does not rate the class F, G, and H certificates or the interest-only X-C and X-D certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 18 Jul 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=884963

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 16 Jun 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=882401

Global Structured Finance Rating Criteria (pub. 27 Jun 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=883130

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Related Research

COMM 2014-CCRE19 Mortgage Trust -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=756587

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1009673

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1009673

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/20160728006712/en/

Fitch Ratings
Primary Analyst
Martin Nunnally, +1-212-908-0871
Associate Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Christopher Bushart, +1-212-908-0606
Managing Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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