Morningstar Credit Ratings Assigns Preliminary Ratings for J.P. Morgan Chase Commercial Securities Trust 2014-C20, Commercial Mortgage Pass-Through Certificates 2014-C20 (JPMCC 2014-C20)

News provided by

Morningstar, Inc.

Jun 04, 2014, 03:59 ET

NEW YORK, June 4, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction J.P. Morgan Chase Commercial Securities Trust 2014-C20, Commercial Mortgage Pass-Through Certificates 2014-C20 (JPMCC 2014-C20). The preliminary ratings are based on information known to Morningstar as of June 4, 2014.

PRELIMINARY RATINGS (AS OF JUNE 4, 2014)

Class

  Balance /Notional Amount

Preliminary Ratings

Morningstar DSCR

Morningstar BLTV

Morningstar ELTV

Credit Support Levels

Class A-1

$33,437,000

AAA

1.94x

70.50%

60.50%

30.000%

Class A-2

$106,744,000

AAA

1.94x

70.50%

60.50%

30.000%

Class A-3A1

$73,542,000

AAA

1.94x

70.50%

60.50%

30.000%

Class A-4A1

$55,000,000

AAA

1.94x

70.50%

60.50%

30.000%

Class A-5

$161,532,000

AAA

1.94x

70.50%

60.50%

30.000%

Class A-SB

$55,809,000

AAA

1.94x

70.50%

60.50%

30.000%

Class X-A

$651,921,000

AAA

1.94x

70.50%

60.50%

N/A

Class X-B

$69,143,000

AAA

1.94x

70.50%

60.50%

N/A

Class A-S

$37,315,000

AAA

1.94x

70.50%

60.50%

25.750%

Class B

$69,143,000

AA

1.83x

74.70%

64.70%

17.875%

Class C

$35,121,000

A-

1.77x

77.30%

67.30%

13.875%

Class EC

$141,579,000

A-

1.73x

79.10%

69.10%

13.875%







NON-OFFERED CERTIFICATES








Class A‑3A2

$73,542,000

AAA

1.94x

70.50%

60.50%

30.000%

Class A‑4A2

$55,000,000

AAA

1.94x

70.50%

60.50%

30.000%

Class X-C

$65,850,421

AAA

1.94x

70.50%

60.50%

N/A

Class D

$55,973,000

BBB-

1.64x

83.20%

73.30%

7.500%

Class E

$12,072,000

BB

1.62x

84.40%

74.40%

6.130%

Class F

$9,878,000

B+

1.60x

85.40%

75.50%

5.000%

Class G

$9,878,000

B-

1.58x

86.40%

76.50%

3.880%

NR

$34,022,421

NR

N/A

N/A

N/A

N/A








The key characteristics of the portfolio of commercial real estate and multifamily mortgage loans supporting JPMCC 2014-C20 are:

  • Thirty-seven mortgage loans secured by 54 commercial and multifamily real estate properties;
  • An aggregate initial pool balance of approximately $878 million;
  • Properties are distributed across 21 states, with 71.8 percent of the cut-off portfolio balance located in California, New York, Illinois, Massachusetts, and Pennsylvania;
  • The largest loan exposure is The Outlets at Orange in Orange, Calif., representing 10.3 percent of the cut-off portfolio balance;
  • The top 10 loans represent 58.0 percent of the cut-off portfolio balance; and
  • The largest exposures by property type are office with 46.6 percent and retail with 35.9 percent, as measured by the cut-off portfolio balance.

Based on information provided on the arranger's website, Morningstar's analysis of the loans yielded the following Morningstar metrics:

  • Weighted-average current and amortizing debt service coverage ratios (DSCRs) of 1.67x and 1.52x, respectively, based on actual loan payment terms;
  • An aggregate pool value of approximately $977 million, 29.3 percent lower than the reported aggregated appraised values; and
  • Beginning and ending portfolio loan-to-value (LTV) ratios of 89.8 percent and 79.9 percent, respectively.

For complete details about the preliminary ratings for this transaction, Morningstar's Presale Analysis Package, including the Presale Report, Asset Summary Reports, Loan Analysis Summary Table, and the Representations, Warranties, and Enforcement Mechanisms, is available under the "Ratings Reports" tab on https://ratingagency.morningstar.com. Information subsequently received could result in the assignment of final ratings that differ from the preliminary ratings.

About Morningstar Credit Ratings, LLC and Morningstar, Inc.

Morningstar Credit Ratings, LLC is a Nationally Recognized Statistical Rating Organization (NRSRO) that specializes in structured credit research and ratings, and offers a wide array of services including new-issue ratings and analysis, operational risk assessments, surveillance services, data, and technology solutions.

Morningstar Credit Ratings, LLC is a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research in North America, Europe, Australia, and Asia.

Morningstar, Inc. offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on approximately 456,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 12 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and had approximately $164 billion in assets under advisement and management as of March 31, 2014. The company has operations in 27 countries.

Morningstar, Inc. is not an NRSRO and its credit ratings on corporate and municipal issuers are not NRSRO credit ratings.

©2014 Morningstar, Inc. All Rights Reserved.

MORN-R

Media Contact:

Michelle Weiss, +1 267-960-6014 or [email protected]

SOURCE Morningstar, Inc.

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