Fitch Ratings has affirmed 12 classes of
Fitch has maintained a Negative Outlook on classes D and E.
RATING ACTIONS
Entity / Debt
Rating
Prior
JPMBB 2014-C19
A-3 46641WAU1
LT
AAAsf
Affirmed
AAAsf
A-4 46641WAV9
LT
AAAsf
Affirmed
AAAsf
A-S 46641WAZ0
LT
AAAsf
Affirmed
AAAsf
A-SB 46641WAW7
LT
AAAsf
Affirmed
AAAsf
B 46641WBA4
LT
AA-sf
Affirmed
AA-sf
C 46641WBB2
LT
A-sf
Affirmed
A-sf
D 46641WAG2
LT
BBB-sf
Affirmed
BBB-sf
E 46641WAJ6
LT
B-sf
Affirmed
B-sf
EC 46641WBC0
LT
A-sf
Affirmed
A-sf
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VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Increase in Loss Expectations: Fitch's pool loss expectations have increased slightly from the prior rating action. Fourteen loans (49.8% of pool) have been designated Fitch Loans of Concern (FLOCs), including four specially serviced loans (7.2%) and loans flagged due to high vacancy, upcoming rollover concerns and/or pandemic-related underperformance. The Outlooks remain Negative on classes D and E due to the high FLOC exposure and concerns with upcoming maturities of retail and office loans. Fitch's ratings incorporate a base case loss of 8.9%.
The largest contributor to losses and largest specially serviced loan is
Three other loans are specially serviced loans (3% of the pool), including two hotel backed loans. Fitch's analysis used recent servicer provided valuations in its analysis; total modeled losses on these three loans is marginally lower than prior rating actions. The largest specially serviced hotel loan is
Retail/Mall Exposure: Of the remaining pool, retail properties back 68.7% of the loans remain. The largest remaining loan in the pool is The Outlets at Orange (FLOC, 16.8%). Overall performance has been stable with recent occupancy reported at 98%. Anchor tenants include
The second largest loan in the pool is
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Downgrades would occur with an increase in pool-level losses from underperforming or specially serviced loans. Downgrades to classes A-3 through A-S and class X-A are not likely due to the position in the capital structure, but may occur should interest shortfalls affect these classes. Downgrades to classes B, C, X-B and EC are possible should expected losses for the pool increase significantly. A downgrade to classes D and E is possible should performance of the FLOCs continue to decline, should additional loans transfer to special servicing, loans do not payoff at maturity and/or should FLOCs not stabilize. Further downgrades to classes F would occur as losses are realized and/or greater certainty of loss.
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:
Upgrades to classes B, C, X-B and EC could occur with significant improvement in CE due to loan payoffs, amortization and/or defeasance; however, adverse selection, increased concentrations and/or further underperformance of the FLOCs could offset the improvement in CE. Classes would not be upgraded above 'Asf' if interest shortfalls are likely. An upgrade to class D would be limited based on sensitivity to concentrations or the potential for future concentration. Classes E and F are unlikely to be upgraded absent significant performance improvement on the FLOCs, substantially higher recoveries than expected on the specially serviced loans/assets and sufficient CE 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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