Fitch Affirms COMM 2014-SAVA

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed one class of COMM 2014-SAVA issued by Deutsche Bank Securities, Inc. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmation reflects stable performance of the underlying collateral since issuance. As of year-end 2015, the Fitch debt service coverage ratio (DSCR) for the portfolio improved to 2.48x as compared to 1.67x at issuance with a debt per bed of $25,469.

As of the June 2016 distribution date, 27 properties have been released from the trust resulting in $108.5 million in paydown of the class A certificates. The aggregate trust balance has decreased to $431.5 million from $550 million at issuance as a result of the collateral release. The sponsor has exercised the first of three one-year extension options after the maturity of the initial two-year term. The floating-rate loan is interest only throughout the term.

The certificates represent the beneficial interests secured by the fee and leasehold interests in 140 skilled nursing facilities (SNFs) totaling 16,928 beds and owned collectively by 140 special purpose property entities (the PropCo borrowers). The collateral also includes all furniture, fixtures, equipment and personal property used in the operation of each property as well as the PropCo borrowers' interest in the healthcare collateral including the healthcare licenses.

The sponsor has designated 31 facilities that serve as collateral for the loan to participate in the Texas Nursing Facility Upper Payment Limit Supplemental Payment Program. In order to participate in the Program, the Sava operators sublease the nursing facilities to non-state governmental organizations (NSGO), which are local community hospitals, and transfer their healthcare licenses to such NSGOs. The NSGO then appoints the Sava operators as the managers of these nursing facilities. Fitch excludes the cash flow of these facilities in the analysis.

RATING SENSITIVITIES

The Rating Outlook remains Stable. No rating actions are anticipated unless there are material changes in occupancy or cash flow. The portfolio performance is consistent with issuance.

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

Fitch has affirmed the following class:

--$141.5 million class A at 'AAAsf'; Outlook Stable.

Fitch does not rate the class B, C, D, X-CP and X-EXT certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (pub. 27 Aug 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870009

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Related Research

COMM 2014-SAVA -- Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=753538

Additional Disclosures

Dodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1005770

Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1005770

Endorsement Policyhttps://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/20160608006327/en/

Fitch Ratings
Primary Analyst:
David Ro, +1-312-368-3132
Director
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
New York
[email protected]

Source: Fitch Ratings

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