Fitch Ratings downgrades one class and affirms 12 classes of
The Rating Outlooks for seven classes have been revised.
RATING ACTIONS
Entity / Debt
Rating
Prior
CGCMT 2014-GC23
A-3 17322VAS5
LT
AAAsf
Affirmed
AAAsf
A-4 17322VAT3
LT
AAAsf
Affirmed
AAAsf
LT
AAAsf
Affirmed
AAAsf
A-S 17322VAV8
LT
AAAsf
Affirmed
AAAsf
B 17322VAW6
LT
AAsf
Affirmed
AAsf
C 17322VAX4
LT
A-sf
Affirmed
A-sf
D 17322VAE6
LT
BBB-sf
Affirmed
BBB-sf
E 17322VAG1
LT
BB-sf
Affirmed
BB-sf
F 17322VAJ5
LT
CCCsf
Downgrade
B-sf
Page
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VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Stable Loss Expectations: The affirmations reflect the overall stable performance of the pool; the downgrade addresses the increased maturity default risks associated with two retail loans within the top-15 including Chula Vista Center and Centre Properties Portfolio. Fitch identified four loans (11.9% of the pool) as Fitch Loan of Concern (FLOC) including one loan (0.4%) in special servicing. Fitch's current ratings incorporate a base case loss expectation of 5.6%.
Fitch Loans of Concern: The largest contributor to losses is the Chula Vista Center (7.0%), a regional mall located in
Non-collateral anchor
Fitch's modeled loss of approximately 42% reflects a cap rate of 15% and the YE 2021 NOI.
The second largest driver to losses is Centre Properties Portfolio (3.3%), a portfolio of four retail properties located in the
Fitch's modeled loss of approximately 16% is based on a cap rate of 9.12% and a 5% stress to the TTM
One loan is in special servicing which is the
Fitch modeled a minimal loss to account for special servicing fees and expenses.
Minimal Change in Credit Enhancement (CE): As of the
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Downgrades to classes A-3 through C and PEZ are not likely due to the position in the capital structure and the high CE and defeasance, but may occur at 'AAAsf' or 'AAsf' should interest shortfalls occur. Downgrades to class D, E and X-C would occur should overall pool losses increase or any large FLOC have an outsized loss which would erode CE. Downgrades to F would occur if performance of the FLOCs fail to stabilize and/or additional loans default and/or transfer to the special servicer.
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 of classes B, C, X-B, and PEZ may occur with further improvement in CE or defeasance. An upgrade to class D would also take into account these factors, but would be limited based on sensitivity to concentrations or the potential for future concentration. Classes would not be upgraded above 'Asf' if there is a likelihood for interest shortfalls. An upgrade to classes E, F, and X-C is not likely unless the FLOCs stabilize, as well as if there is 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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