Fitch Affirms CGCMT 2014-GC21

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed 16 classes of Citigroup Commercial Mortgage Trust commercial mortgage pass-through certificates series 2014-GC21. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are due to overall stable performance. The stable performance reflects no material changes to pool metrics since issuance, therefore the original rating analysis was considered in affirming the transaction.

As of the March 2016 distribution date, the pool's aggregate principal balance has been reduced by 1.5% to $1.02 billion from $1.04 billion at issuance. No loans are defeased. Interest shortfalls are currently affecting class G. There are six loans (9%) on the servicer's watchlist, mostly due to deferred maintenance and lease rollover exposure. None of the watchlist loans are considered Fitch Loans of Concern.

The largest loan in the pool is the Maine Mall loan (12.2% of the pool), which is secured by a 1.2 million square foot (sf) regional mall located approximately six miles southwest of Portland, ME. The mall has four anchors: Macy's (non-collateral), Sears (non-collateral), Bon Ton, and JCPenney. There are also junior anchors: Best Buy, Sports Authority, XXI Forever, and Old Navy. The mall also features the only Apple store in the state of Maine. The debt service coverage ratio (DSCR) was reported to be 2.03x as of year-end (YE) 2015. Occupancy was reported to be 97%, which is in line with the occupancy at issuance.

The next largest loan in the pool is the Newcastle Senior Housing Portfolio loan (9.8%). The loan is collateralized by 26 independent living senior housing facilities, totaling 3,002 units. Located across 14 states, the portfolio is 100% private pay and offers no assisted living functions. As of September 2015, the DSCR and occupancy was reported to be 1.92x and 93%, respectively, compared to 1.59x and 91% at issuance.

The third largest loan in the pool is the Greene Town Center loan (4.5%), which is secured by an open-air, mixed-use lifestyle center located in Beavercreek, OH, roughly 10 miles southwest of Dayton. The collateral consists of retail (566,634 sf), office (143,343 sf) and residential space (206 units totaling 199,248 sf). Built in phases from 2006-2008, the property is anchored by Von Maur (ground lease), Urban Active Fitness (LA Fitness) and Nordstrom Rack. The office and residential portions of the property are located above the retail space on the second floor of the buildings. The DSCR was reported to be 1.86x as of September 2014. Occupancy was reported to be 90%, which is in line with the occupancy at issuance. Updated financial information has been requested. Fitch will continue to closely monitor performance given the outdated reporting for this loan.

RATING SENSITIVITIES

The Rating Outlook for all classes remains Stable due to stable collateral performance. Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's portfolio-level metrics.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Fitch affirms the following classes:

--$36.5 million class A-1 at 'AAAsf'; Outlook Stable;

--$63.2 million class A-2 at 'AAAsf'; Outlook Stable;

--$9.6 million class A-3 at 'AAAsf'; Outlook Stable;

--$240 million class A-4 at 'AAAsf'; Outlook Stable;

--$291.4 million class A-5 at 'AAAsf'; Outlook Stable;

--$71.6 million class A-AB at 'AAAsf'; Outlook Stable;

--$770.8* million class X-A at 'AAAsf'; Outlook Stable;

--$115.7* million class X-B at 'AA-sf'; Outlook Stable;

--$58.5 million class A-S at 'AAAsf'; Outlook Stable;

--$70.2 million class B at 'AA-sf'; Outlook Stable;

--$0 class PEZ at 'A-sf'; Outlook Stable;

--$45.5 million class C at 'A-sf'; Outlook Stable;

--$24.7* million class X-C at 'BBsf'; Outlook Stable;

--$50.7 million class D at 'BBB-sf'; Outlook Stable;

--$24.7 million class E at 'BBsf'; Outlook Stable;

--$13 million class F at 'Bsf'; Outlook Stable.

*Notional and interest-only.

Fitch does not rate the class G or X-D certificates. Class A-S, B, and C certificates may be exchanged for a related amount of class PEZ certificates, and class PEZ certificates may be exchanged for class A-S, B, and C certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 28 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748781

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Related Research

Citigroup Commercial Mortgage Trust 2014-GC21 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=751754

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1002439

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1002439

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160413006517/en/

Fitch Ratings
Primary Analyst
Daniel Anderson
Associate Director
+1-312-606-2305
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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