Fitch Affirms JPMBB 2014-C18

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed 15 classes of J.P. Morgan Chase Commercial Mortgage Securities Trust (JPMBB) commercial mortgage pass-through certificates series 2014-C18. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are the result of stable performance since issuance. As of the November 2015 distribution date, the pool's aggregate principal balance has been reduced by 1.5% to $943.3 million from $957.6 million at issuance. No loans are defeased. There are five loans on the master servicer's watchlist (3.2%), two of which are due to lease rollover exposure and one due to deferred maintenance. There is one loan on the watchlist due to the collateral property experiencing severe damage due to the events that took place in the Baltimore area in April 2015. All of the watchlist loans, however, remain current and Fitch has not designated any loans as Fitch Loans of Concern.

Approximately 90% of the loans reported year end (YE) 2014 financials. There is a notable retail exposure within the transaction. Eight of the top 15 loans representing 44.1% of the pool are secured by retail properties.

The largest loan in the pool is the Miami International Mall loan (10.6% of the pool), which is secured by 306,855 square feet (sf) of inline retail space at the 1.1 million sf super-regional mall located 12 miles northwest of downtown Miami. Non-collateral anchors include Macy's, JC Penney, Sears and Kohl's. The property features more than 140 retailers and in-line tenants include H&M, Gap, Forever 21, Old Navy and Victoria's Secret. The debt service coverage ratio (DSCR) was reported to be 2.69x as of YE 2014 compared to 2.77x at issuance. Occupancy was reported to be 94%, which is in line with the occupancy at issuance.

The next largest loan in the pool is the Jordan Creek Town Center loan (10.3% of the pool), which is secured by 503,034 sf of inline space at the 1.1 million sf regional mall located in West Des Moines, IA. The mall is anchored by Dillard's (non-collateral), Younkers (non-collateral) and Scheel's All Sports (leasehold). The mall was developed by the sponsor, General Growth Properties, in 2004 and is part of a larger development that includes a lifestyle center, Village at Jordan Creek, and a three-acre lake surrounded by bike trails, waterfront dining, a hotel and an amphitheater. As of YE 2014, the reported DSCR and occupancy was 1.63x and 98%, respectively. This compares favorably to the 1.59x DSCR and 95% occupancy at issuance.

The third largest loan in the pool is the Marriott Anaheim loan (8.5% of the pool). The loan is collateralized by a 1,030-key full-service hotel in Anaheim, CA. The property is adjacent to the Anaheim Convention Center and two blocks from the Disneyland Resort. Property Amenities include a ballroom and other smaller meeting/conference space totaling 111,000 sf. The hotel also features a business center, a 24-hour fitness center and an outdoor heated pool. Occupancy was reported to be 73% as of YE 2014, which is in line with the occupancy at issuance. The net operating income, however, has experienced significant growth since issuance. An increase of approximately 38% from issuance has improved the DSCR to 2.34x at YE 2014.

RATING SENSITIVITIES

The Rating Outlook for all classes remains Stable due to stable collateral performance. Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's portfolio-level metrics.

DUE DILIGENCE USAGE

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

Fitch affirms the following classes:

--$37.9 million class A-1 at 'AAAsf'; Outlook Stable;

--$85.2 million class A-2 at 'AAAsf'; Outlook Stable;

--$23.5 million class A-3 at 'AAAsf'; Outlook Stable;

--$87.5 million class A-4A1 at 'AAAsf'; Outlook Stable;

--$87.5 million class A-4A2 at 'AAAsf'; Outlook Stable;

--$267 million class A-5 at 'AAAsf'; Outlook Stable;

--$67.4 million class A-SB at 'AAAsf'; Outlook Stable;

--$55.1 million class A-S at 'AAAsf'; Outlook Stable;

--$711.1 million* class X-A at 'AAAsf'; Outlook Stable;

--$69.4 million class B at 'AA-sf'; Outlook Stable;

--$37.1 million class C at 'A-sf'; Outlook Stable;

--$161.6 class EC at 'A-sf'; Outlook Stable;

--$56.3 million class D at 'BBB-sf'; Outlook Stable;

--$19.2 million class E at 'BBsf'; Outlook Stable;

--$12 million class F at 'Bsf'; Outlook Stable.

*Notional and interest-only.

Class A-S, B and C certificates may be exchanged for a related amount of class EC certificates, and class EC certificates may be exchanged for class A-S, B and C certificates.

Fitch does not rate the class NR and X-C certificates. Fitch previously withdrew the rating on the interest-only class X-B 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. 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

J.P. Morgan Chase Commercial Mortgage Securities Trust 2014-C18 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=872373

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=996870

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=996870

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/20151216006281/en/

Fitch Ratings
Primary Analyst
Daniel Anderson, +1-312-606-2305
Associate Director
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
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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