Fitch Affirms MSBAM 2014-C16

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 13 classes of Morgan Stanley Bank of America Merrill Lynch Trust 2014-C16. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations are based on the stable performance of the underlying collateral pool. As of the May 2015 distribution date, the pool has had no delinquent or specially serviced loans. None of the loans are designated as Fitch Loans of Concern. The pool's aggregate principal balance has been paid down by 0.53% to $1.26 billion from $1.27 billion at issuance.

The largest loan in the pool (11.5% of the pool) is secured by Arundel Mills Mall, a 1,554,241-101,535 sf square foot (sf) super-regional mall, and Arundel Mills Marketplace, an adjacent one-story, anchored shopping center located in Hanover, MD within the Baltimore-Washington Corridor. As of December 2014, the Arundel Mills & Marketplace property was 99.6% occupied by 170 tenants, (99.2% permanent tenants), including Bass Pro Shops (7.7% of net rentable area [NRA]), Cinemark Theatres (6.5% of NRA) and Burlington Coat Factory (4.9% of NRA).

The second largest loan (7.9% of the pool) is secured by The State Farm Portfolio which comprises 14 suburban office properties located in 11 cities across 11 states. The properties are 100% leased to State Farm Mutual Automobile Insurance Company (State Farm), and are used as regional operation headquarters. The leases have various remaining terms; however, leases associated with approximately 92.4% of total sf have an expiration date of November 2028.

The third largest loan (5.1% of the pool) is secured by a five-building, 583,962 sf suburban office property located in Reading, PA. The property consists of two suburban office complexes: Green Hills Corporate Center I and Green Hills Corporate Center II. Green Hills Corporate Center I was constructed 1970 and has undergone three expansions, and Green Hills Corporate Center II was constructed in 1992. Occupancy was 99% as of December 2014.

RATING SENSITIVITIES

The Rating Outlook for all classes remains Stable. 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 portfolio-level metrics. Additional information on rating sensitivity is available in the Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C16 (May 30, 2014) 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 classes:

--$46 million class A-1 'AAAsf'; Outlook Stable;

--$132.1 million class A-2 'AAAsf'; Outlook Stable;

--$72.3 million class A-SB 'AAAsf'; Outlook Stable;

--$43.9 million class A-3 'AAAsf'; Outlook Stable;

--$250 million class A-4 'AAAsf'; Outlook Stable;

--$335.8 million class A-5 'AAAsf'; Outlook Stable;

--$956.5 million interest-only class X-A 'AAAsf'; Outlook Stable;

--$69.7 million class A-S 'AAAsf'; Outlook Stable;

--$91.8 million class B 'AA-sf'; Outlook Stable;

--$209 million class PST 'A-sf'; Outlook Stable;

--$47.5 million class C 'A-sf'; Outlook Stable;

--$91.8 million interest-only class X-B 'AA-sf'; Outlook Stable;

--$72.8 million class D 'BBB-sf'; Outlook Stable;

--$28.5 million class E 'BB-sf'; Outlook Stable.

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

Class A-S, class B and class C certificates may be exchanged for class PST Certificates, and class PST Certificates may be exchanged for class A-S, class B and class C certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 31 Mar 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

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

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=986265

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/20150611006302/en/

Fitch Ratings
Primary Analyst
Christopher Bushart
Senior Director
+1-212-908-0606
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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