Fitch Ratings has downgraded three classes and affirmed nine classes of
RATING ACTIONS
Entity / Debt
Rating
Prior
JPMBB 2014-C18
A-4A1 46641JAV8
LT
AAAsf
Affirmed
AAAsf
A-4A2 46641JAA4
LT
AAAsf
Affirmed
AAAsf
A-5 46641JAW6
LT
AAAsf
Affirmed
AAAsf
A-S 46641JBA3
LT
AAAsf
Affirmed
AAAsf
A-SB 46641JAX4
LT
AAAsf
Affirmed
AAAsf
B 46641JBB1
LT
Asf
Downgrade
AA-sf
C 46641JBC9
LT
BBBsf
Downgrade
A-sf
D 46641JAE6
LT
CCCsf
Affirmed
CCCsf
E 46641JAG1
LT
CCsf
Affirmed
CCsf
Page
of 2
VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Increased Loss Expectations: The downgrades reflect Fitch's increased loss expectations since the prior rating action primarily driven by the
The largest increase in loss since the prior review is the
The subject has substantial nearby competition, including the Taubman-owned
Property occupancy declined to 78% as of
The largest contributor to overall loss expectations is the specially serviced
Servicer-reported NOI DSCR for this loan was 1.27x as of the YTD
The second largest contributor to overall loss expectations is the Shops at Wiregrass (6.5% of the pool) loan, which is secured by a 456,637-sf portion of a 759,880-sf outdoor shopping center located in
The property suffered declining cash flow during the pandemic, but is recovering to pre-pandemic levels. Servicer-reported NOI debt DSCR increased to 1.44x as of the YTD
Increasing Credit Enhancement (CE): As of the
Pari Passu Loans: Five loans (51.8% of pool) are pari passu.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Sensitivity factors that lead to downgrades include an increase in pool level losses from underperforming or specially serviced loans. Downgrades of the 'AAAsf' rating categories are not considered likely due to the position in the capital structure and level of CE, but may occur should interest shortfalls affect these classes.
Downgrades to the 'Asf' and 'BBBsf' category could occur if performance of the FLOCs continues to decline, additional loans transfer to special servicing and/or loans impacted by the pandemic do not stabilize. Further downgrades to the distressed 'CCCsf' rated and below classes would occur with increased certainty of losses or as additional losses are realized.
Fitch has identified both a baseline and a worse-than-expected, adverse stagflation scenario based on fallout from the
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Sensitivity factors that lead to upgrades would occur with stable to improved asset performance coupled with pay down and/or defeasance. Upgrades of the 'Asf' and 'BBBsf' categories would likely occur with significant improvement in CE and/or defeasance; however, adverse selection, increased concentrations and further underperformance of the FLOCs or loans that continually to be negatively affected by the pandemic could cause this trend to reverse.
Upgrades to the 'CCCsf' and below categories are not likely until the later years in a transaction and only if the performance of the remaining pool is stable and/or properties vulnerable to the coronavirus return to pre-pandemic levels, and there is sufficient credit enhancement to the classes.
Best/Worst Case Rating Scenario
International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.
Additional information is available on www.fitchratings.com
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