Fitch to Rate COMM 2014-CCRE14 Commercial Mortgage Trust Pass-Through Certificates; Presale Issued

Fitch Ratings has issued a presale report on Deutsche Bank Securities, Inc.'s COMM 2014-CCRE14 Commercial Mortgage Trust Pass-Through Certificates.

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

--$56,404,000 class A-1 'AAAsf'; Outlook Stable;

--$355,067,000 class A-2 'AAAsf'; Outlook Stable;

--$85,622,000 class A-SB 'AAAsf'; Outlook Stable;

--$150,000,000 class A-3 'AAAsf'; Outlook Stable;

--$317,300,000 class A-4 'AAAsf'; Outlook Stable;

--$1,095,274,000a class X-A 'AAAsf'; Outlook Stable;

--$130,881,000 class A-M 'AAAsf'; Outlook Stable;

(a) Notional amount and interest only.

The expected ratings are based on information provided by the issuer as of Jan. 2, 2014. Fitch does not expect to rate the $98,162,000 class B, $275,540,000 exchangeable class PEZ, $46,497,000 class C, $43,054,000 class D, $30,998,000 class E, $15,499,000 class F, $48,220,377 class G, the $187,713,000 interest-only class X-B, or the $94,717,377 interest-only class X-C.

The certificates represent the beneficial ownership interest in the trust, primary assets of which are 59 loans secured by 87 commercial properties having an aggregate principal balance of approximately $1.377 billion, as of the cutoff date. The loans were contributed to the trust by German American Capital Corporation, Natixis Real Estate Capital, Cantor Commercial Real Estate Lending, L.P., and Liberty Island Group I, LLC.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 79.9% of the properties by balance, cash flow analysis of 85.5%, and asset summary reviews on 85.5% of the pool.

KEY RATING DRIVERS

Leverage Levels Including Fitch DSCR and Fitch LTV. The Fitch Ratings DSCR of 1.22x is slightly below the average for 2013 of 1.29x, while the trust's Fitch LTV of 94.4% is slightly lower than the 2013 average of 101.6%. However, excluding the two credit opinion loans, the leverage for the pool is higher, at 1.13x and 102.7%.

Credit Opinion Loans: The pool includes two loans (18.2% of the pool) with an investment-grade credit opinion; 60 Hudson Street has an investment-grade credit opinion of 'AAsf' and the St. Louis Galleria has an investment-grade credit opinion of 'BBB-sf'.

High Multifamily/Low Lodging and Retail Exposure: The second largest property type concentration is multifamily (21.6%), which is viewed favorably in Fitch's analysis. Retail is relatively low at 13.1%, and hotel is lower than recent deals at 10.4%.

Less Amortization and More Interest Only Loans: The pool amortizes by approximately 10.3% from aggregate cutoff balance to aggregate maturity balance. The pool includes four interest-only (IO) loans (27.7%) and 17 partial IO loans (34.1%).

RATING SENSITIVITIES

For this transaction, Fitch's net cash flow (NCF) was 6.13% below the full-year 2012 net operating income (NOI) (for properties that 2012 NOI was provided, excluding properties that were stabilizing during this period). Unanticipated further declines in property-level NCF could result in higher defaults and loss severities on defaulted loans, and could result in potential rating actions on the certificates. Fitch evaluated the sensitivity of the ratings assigned to COMM 2014-CCRE14 certificates and found that the transaction displays average sensitivity to further declines in NCF. In a scenario in which NCF declined a further 20% from Fitch's NCF, a downgrade of the junior 'AAAsf' certificates to 'A-sf' could result. In a more severe scenario, in which NCF declined a further 30% from Fitch's NCF, a downgrade of the junior 'AAAsf' certificates to 'BBB' could result. The presale report includes a detailed explanation of additional stresses and sensitivities on pages 75 - 76.

The Master Servicer will be Wells Fargo Bank, N.A, rated 'CMS2' by Fitch. The special servicer will be Rialto Capital Management LLC, rated 'CSS2-' by Fitch.

The presale report is available at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions (Aug. 7, 2013);

--Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (Sept. 20, 2013);

--Global Structured Finance Rating Criteria (May 24, 2013);

--U.S. Commercial Mortgage Servicer Rating Criteria (Feb. 18, 2011);

--U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (Dec. 18, 2013);

--Counterparty Criteria for Structured Finance and Covered Bonds (May 30, 2013).

Applicable Criteria and Related Research: COMM 2014-CCRE14 Mortgage Trust (US CMBS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=728716

Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715757

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=718468

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

U.S. Commercial Mortgage Servicer Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Counterparty Criteria for Structured Finance and Covered Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=707155

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=813417

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Fitch Ratings
Primary Analyst
Gregg Katz, [phone]
Director
Fitch Ratings, Inc.
70 West Madison
Chicago, IL 60602
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Secondary Analyst
Eric Kraushaar, [phone]
Analyst
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Managing Director
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