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Rating Action:

Moody's Affirms Thirteen Classes of JPMBB 2014-C25

21 Sep 2018

Approximately $982.2 Million of Structured Securities Affected

New York, September 21, 2018 -- Moody's Investors Service, ("Moody's") has affirmed the ratings on thirteen classes in JPMBB Commercial Mortgage Securities Trust, Commercial Mortgage Pass-Through Certificates, Series 2014-C25 as follows:

Cl. A-1, Affirmed Aaa (sf); previously on Sep 7, 2017 Affirmed Aaa (sf)

Cl. A-2, Affirmed Aaa (sf); previously on Sep 7, 2017 Affirmed Aaa (sf)

Cl. A-3, Affirmed Aaa (sf); previously on Sep 7, 2017 Affirmed Aaa (sf)

Cl. A-4A1, Affirmed Aaa (sf); previously on Sep 7, 2017 Affirmed Aaa (sf)

Cl. A-4A2, Affirmed Aaa (sf); previously on Sep 7, 2017 Affirmed Aaa (sf)

Cl. A-5, Affirmed Aaa (sf); previously on Sep 7, 2017 Affirmed Aaa (sf)

Cl. A-SB, Affirmed Aaa (sf); previously on Sep 7, 2017 Affirmed Aaa (sf)

Cl. A-S, Affirmed Aa1 (sf); previously on Sep 7, 2017 Affirmed Aa1 (sf)

Cl. B, Affirmed Aa3 (sf); previously on Sep 7, 2017 Affirmed Aa3 (sf)

Cl. C, Affirmed A3 (sf); previously on Sep 7, 2017 Affirmed A3 (sf)

Cl. EC, Affirmed A1 (sf); previously on Sep 7, 2017 Affirmed A1 (sf)

Cl. X-A, Affirmed Aa1 (sf); previously on Sep 7, 2017 Affirmed Aa1 (sf)

Cl. X-B, Affirmed Aa3 (sf); previously on Sep 7, 2017 Affirmed Aa3 (sf)

RATINGS RATIONALE

The ratings on ten P&I classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges.

The rating on the exchangeable class, Cl. EC, was affirmed due to the weighted average rating factor (WARF) of the exchangeable classes.

The rating on the IO classes, Cl. X-A and Cl. X-B, were affirmed based on the credit quality of their referenced classes.

Moody's rating action reflects a base expected loss of 4.8% of the current pooled balance, compared to 4.5% at Moody's last review. Moody's base expected loss plus realized losses is now 4.6% of the original pooled balance, compared to 4.5% at the last review. Moody's provides a current list of base expected losses for conduit and fusion CMBS transactions on moodys.com at http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF215255.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS:

The performance expectations for a given variable indicate Moody's forward-looking view of the likely range of performance over the medium term. Performance that falls outside the given range can indicate that the collateral's credit quality is stronger or weaker than Moody's had previously expected.

Factors that could lead to an upgrade of the ratings include a significant amount of loan paydowns or amortization, an increase in the pool's share of defeasance or an improvement in pool performance.

Factors that could lead to a downgrade of the ratings include a decline in the performance of the pool, loan concentration, an increase in realized and expected losses from specially serviced and troubled loans or interest shortfalls.

METHODOLOGY UNDERLYING THE RATING ACTION

The principal methodology used in rating JPMBB Commercial Mortgage Trust 2014-C25, Cl. A-1, Cl. A-2, Cl. A-3, Cl. A-4A1, Cl. A-4A2, Cl. A-5, Cl. A-S, Cl. A-SB, Cl. B, and Cl. C was "Approach to Rating US and Canadian Conduit/Fusion CMBS" published in July 2017. The principal methodology used in rating JPMBB Commercial Mortgage Trust 2014-C25, Cl. EC was "Moody's Approach to Rating Repackaged Securities" published in June 2015. The methodologies used in rating JPMBB Commercial Mortgage Trust 2014-C25, Cl. X-A and Cl. X-B were "Approach to Rating US and Canadian Conduit/Fusion CMBS" published in July 2017 and "Moody's Approach to Rating Structured Finance Interest-Only (IO) Securities" published in June 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.

DEAL PERFORMANCE

As of the September 17, 2018 distribution date, the transaction's aggregate certificate balance has decreased by 2.7% to $1.15 billion from $1.18 billion at securitization. The certificates are collateralized by 65 mortgage loans ranging in size from less than 1% to 9.4% of the pool, with the top ten loans (excluding defeasance) constituting 47.9% of the pool. Four loans, constituting 7.1% of the pool, have defeased and are secured by US government securities.

Moody's uses a variation of Herf to measure the diversity of loan sizes, where a higher number represents greater diversity. Loan concentration has an important bearing on potential rating volatility, including the risk of multiple notch downgrades under adverse circumstances. The credit neutral Herf score is 40. The pool has a Herf of 26, compared to 28 at Moody's last review.

Eight loans, constituting 7.0% of the pool, are on the master servicer's watchlist. The watchlist includes loans that meet certain portfolio review guidelines established as part of the CRE Finance Council (CREFC) monthly reporting package. As part of Moody's ongoing monitoring of a transaction, the agency reviews the watchlist to assess which loans have material issues that could affect performance.

There are no loans that have been liquidated from the pool. Four loans, constituting 1.6% of the pool, are currently in special servicing. The largest specially serviced loan is the Hampton Inn Houston -- Northwest ($6.4 million -- 0.6% of the pool), which is secured by a 62-key limited-service hotel located in Houston, Texas approximately 20 miles northwest of the Houston central business district. The loan transferred to special servicing in February 2018 due to declining performance related to the oil market. The year end 2017 occupancy, average daily rate (ADR) and revenue per available room (RevPAR) were 67.6%, $107.56 and $72.71, respectively, compared to 75.0%, $134.54 and $100.91, respectively, at securitization.

The remaining three specially serviced loans are secured by two hotels and one retail property. Moody's estimates an aggregate $7.4 million loss for the specially serviced loans (40.5% expected loss on average).

Moody's has also assumed a high default probability for three poorly performing loans, constituting 2.2% of the pool, and has estimated an aggregate loss of $3.8 million (a 15% expected loss based on a 50% probability default) from these troubled loans.

Moody's received full year 2017 operating results for 95% of the pool, and full or partial year 2018 operating results for 96% of the pool (excluding specially serviced and defeased loans). Moody's weighted average conduit LTV is 108.8%, compared to 110.3% at Moody's last review. Moody's conduit component excludes loans with structured credit assessments, defeased and CTL loans, and specially serviced and troubled loans. Moody's net cash flow (NCF) reflects a weighted average haircut of 18.9% to the most recently available net operating income (NOI). Moody's value reflects a weighted average capitalization rate of 9.8%.

Moody's actual and stressed conduit DSCRs are 1.66X and 1.00X, respectively, compared to 1.65X and 0.98X at the last review. Moody's actual DSCR is based on Moody's NCF and the loan's actual debt service. Moody's stressed DSCR is based on Moody's NCF and a 9.25% stress rate the agency applied to the loan balance.

The top three conduit loans represent 23% of the pool balance. The largest loan is the CityPlace Loan ($108.8 million -- 9.4% of the pool), which is secured by five adjacently located office buildings and one mixed-use office building located in Creve Coeur, Missouri. Creve Coeur is located approximately seventeen miles west of the St. Louis central business district. The collateral is part of a larger 31-acre campus, which includes 1.2 million square feet (SF) of office space, retail, and residential buildings. As of June 2018, the property was 94% leased, compared to 93% leased, as of July 2017. Moody's LTV and stressed DSCR are 124% and 0.83X, respectively, the same at the last review.

The second largest loan is the BankNote Building Loan ($83 million -- 7.2% of the pool), which is secured by a Class-B office complex located within the Hunts Point neighborhood of the Bronx in New York City. The property is comprised of four buildings developed in 1910 and designated as a historic landmark by the NYC Landmarks Preservation Committee in 2008. The property received approximately $33 million in capital improvements between 2007 and 2014. As of June 2018, the property was 96% leased compared to 88% leased, as of June 2017. The loan is encumbered by an additional $10 million B Note. Property performance has improved since securitization due to an increase in revenues. Moody's LTV and stressed DSCR are 118.6% and 0.84X, respectively, compared to 129.4% and 0.77X at the last review.

The third largest loan is the Grapevine Mills Loan ($73 million -- 6.3% of the pool), which is secured by a 1.34 million SF component of a 1.63 million SF super-regional mall located in Grapevine, Texas. The loan represents a pari-passu portion of a $268.0 million mortgage loan. The property is located approximately 10 miles north of Dallas/Fort Worth International Airport and contains a mix of outlets, traditional retailers and entertainment related venues. The largest tenants include Fieldhouse USA, Burlington Coat Factory, Round 1 Bowling and Last Call by Neiman Marcus. The property also includes a 30-screen AMC Theatres, Legoland Discovery Center, and an aquarium. The collateral was 95% leased as of year-end 2017, compared to 99% leased as of year-end 2016. Moody's LTV and stressed DSCR are 71% and 1.38X, respectively, the same as at the last review.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions of the disclosure form.

The analysis includes an assessment of collateral characteristics and performance to determine the expected collateral loss or a range of expected collateral losses or cash flows to the rated instruments. As a second step, Moody's estimates expected collateral losses or cash flows using a quantitative tool that takes into account credit enhancement, loss allocation and other structural features, to derive the expected loss for each rated instrument.

Moody's did not use any stress scenario simulations in its analysis.

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Ruby Kaur
Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Matthew Halpern
Vice President - Senior Analyst
Structured Finance Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

No Related Data.
© 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

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