Fitch Affirms JPMCC Mortgage Securities Trust 2014-FBLU

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed all classes of J.P. Morgan Chase Commercial Mortgage Securities Trust 2014-FBLU commercial mortgage pass-through certificates series 2014-FBLU. A full list of rating actions follows at the end of this release.

The certificates represent the beneficial ownership in the trust, the primary asset of which is one loan having an aggregate principal balance of approximately $535 secured by the Fontainebleau Miami Beach, a 1,594 room luxury resort hotel located along the beach in Miami Beach, FL. The loan was originated by JP Morgan Chase Bank, National Association.

KEY RATING DRIVERS

The affirmations reflect strong collateral performance since issuance. As of the trailing twelve months (TTM) June 2015 the property had occupancy, ADR and RevPAR of 82.2%, $338.77 and $278.47 respectively. This represents a 7.9% increase in RevPAR from June 2014.

The Fontainebleau Resort is a class A luxury resort located in Miami Beach, FL with an irreplaceable location directly along the Atlantic Ocean and first-class amenities including over 200,000 sf of meeting and event space, a 40,000-sf spa, 12 swimming pools and multiple dining and entertainment options. The property consistently ranks among the top conference hotels in the region and is a dominant property in its primary competitive set.

The transaction is secured by a single hotel property and therefore more susceptible to single event risk related to the market. Hotel performance is considered to be more volatile due to their operating nature.

Approximately 45% of revenue at the property is derived from food and beverage (F&B) revenue, which is considered more volatile than room revenue. Although the overall level of F&B is high, it is spread among multiple venues and sources such as restaurants, banquet functions and lounges. The property's signature restaurants and LIV nightclub serve as draws for non-hotel guests as well.

RATING SENSITIVITIES

All of the classes have stable Rating Outlooks and no rating changes are expected unless there is a material decline in property performance. Upgrades are unlikely given the concentrated pool and relatively short loan term.

Key Rating Drivers and Rating Sensitivities are further described in the transaction's presale report. The presale report is available to all investors on Fitch's web site 'www.fitchratings.com'.

DUE DILIGENCE USAGE

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

Fitch has affirmed the following classes:

--$205 million class A at 'AAAsf'; Outlook Stable;

--$340 million interest-only class X-CP at 'A-sf'; Outlook Stable;

--$340 million interest-only class X-EXT at 'A-sf'; Outlook Stable;

--$77 million class B at 'AA-sf'; Outlook Stable;

--$58 million class C at 'A-sf'; Outlook Stable;

--$76 million class D 'BBB-sf'; Outlook Stable.

Fitch does not rate class E.

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

J.P. Morgan Chase Commercial Mortgage Securities Trust 2014-FBLU -- Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=745397

Additional Disclosures

Dodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=993040

Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=993040

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/20151028006640/en/

Fitch Ratings
Primary Analyst:
R. Brook Sutherland, +1-312-606-2346
Senior Director
Fitch Ratings, Inc.
70 West Madison
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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