Morningstar DBRS Confirms Credit Ratings on All Classes of COMM 2014-CCRE15 Mortgage Trust

DBRS Limited (Morningstar DBRS) confirmed its credit ratings on all classes of Commercial Mortgage Pass-Through Certificates, Series 2014-CCRE15 issued by COMM 2014-CCRE15 Mortgage Trust as follows:

-- Class B at AA (high) (sf)
-- Class C at AA (sf)
-- Class PEZ at AA (sf)
-- Class X-B at A (low) (sf)
-- Class D at BBB (high) (sf)
-- Class E at CCC (sf)
-- Class F at C (sf)

The trends on Classes X-B and D remain Negative. The remaining classes have Stable trends with the exception of Classes E and F, which have credit ratings that do not typically carry a trend in commercial mortgage-backed securities (CMBS) transactions.

The credit rating confirmations and Stable trends reflect Morningstar DBRS' recoverability expectations for the remaining loans in the pool, most notably 625 Madison Avenue (Prospectus ID#3, 38.2% of the pool), a pari passu loan that is also secured in the COMM 2014-CCRE14 Mortgage Trust transaction (rated by Morningstar DBRS). The loan, which is secured by the leased-fee interest in the land under 625 Madison Avenue, a 17-story Class A office tower in Manhattan, continues to exhibit a favorable credit profile and is expected to be fully recovered upon resolution. Additional details are outlined below.

Morningstar DBRS considered liquidation scenarios for the three loans in special servicing (45.5% of the pool), applying conservative haircuts to the most recent appraised values, resulting in aggregate projected losses totaling $42.2 million. Those losses would erode the remaining non-rated Class G balance, and approximately 60.0% of the C (sf)-rated Class F balance. The Negative trend on the Class D certificate reflects the possibility of further value deterioration for the underlying collateral backing the defaulted loans. In addition, Morningstar DBRS has concerns regarding the accumulation of interest shortfalls, which have increased by $400,000 since the previous credit rating action and are currently accruing at a rate of approximately $110,000 per month. The Class F certificate has not received full interest payments since the March 2025 remittance. Although the Class D certificate continues to receive full interest due, the servicer could elect to withhold those payments if the workout periods for the specially serviced loans continue to extend, further supporting the Negative trend on that class.

As of the May 2025 remittance, the pool's aggregate principal balance of $192.6 million represents a collateral reduction of 80.9% since issuance. Five loans remain in the pool, two of which, 625 Madison Avenue and 600 Commonwealth (Prospectus ID#6, 16.3% of the current pool balance), transferred back to the master servicer since the previous credit rating action with both underlying properties in various stages of redevelopment. To date, the trust has realized $18.8 million in losses, which have been contained to the non-rated Class G certificate.

The largest contributor to Morningstar DBRS' loss projections is the 25 West 45th Street loan (Prospectus ID#4, 32.6% of the current pool balance), which is secured by a 17-story Class B office tower in Manhattan's Grand Central submarket. The loan transferred to special servicing after failing to repay at maturity in January 2024. Foreclosure proceedings and the appointment of a receiver are being pursued while discussions with the borrower continue. Two large tenants, WeWork and FedEx (collectively representing 17.0% of net rentable area (NRA)), vacated in 2023. In addition, seven tenants, representing 28.1% of NRA, have leases scheduled to expire within the next 12 months. The property was 70.4% occupied as of the March 2025 rent roll, whereas the Grand Central submarket reported a vacancy figure of 12.0% as of Q1 2025, according to Reis. The property was appraised in January 2025 at a value of $60.0 million, a sharp decline from the issuance appraised value of $107.0 million and below the $62.7 million loan balance. As a result of significant near-term tenant rollover, the Class B quality of the property, the sharp decline in value from issuance, and the general challenges for office properties in today's environment, Morningstar DBRS analyzed the loan with a liquidation scenario by applying a conservative 40.0% haircut to the most recent appraised value, resulting in an implied loss of $36.0 million and a loss severity of 57.0%.

The second-largest specially serviced loan, River Falls Shopping Center (Prospectus ID#15, 7.7% of the current pool balance), is secured by a 287,717-square-foot (sf) portion of an 872,969-sf anchored shopping center in Clarksville, Indiana, approximately seven miles north of the Louisville, Kentucky, central business district. The loan originally transferred to special servicing in May 2020 for monetary default, and the borrower and lender subsequently executed a forbearance agreement that extended the loan's maturity date to January 2025. The borrower requested an additional eight-month extension, after the initial forbearance period ended in January 2025. According to the servicer, a formal agreement is expected to be finalized in June 2025. The subject's third-largest tenant, Gabriel Brothers Inc. (Gabe's) (11.6% of NRA, lease expiring July 2028), will vacate its current space and occupy the Old Time Pottery space (29.6% of NRA; currently the largest tenant at the property) after the tenant vacates in August 2025, ahead of its October 2026 lease expiration date. Gabe's will pay a rental rate of $4.0 per sf (psf) for the first five years and $4.5 psf until lease expiration in January 2036, according to a March 2025 asset status report. Although the current Gabe's space will be vacant from August 2025 onward, the increased rental rate of $4.0 psf compared with Old Time Pottery's current rental rate of approximately $1.0 psf will partially offset the overall reduction in total base rent. In addition, the second-largest tenant, Dick's Sporting Goods (17.1% of NRA), has a lease expiring in January 2026. According to the December 2024 financial reporting, net cash flow remains stable at $1.3 million (reflecting a debt service coverage ratio of 1.13 times), in line with 2023 levels. The property was most recently appraised in July 2024 for $20.3 million, down from the issuance appraised value of $24.0 million. Given the recent departure of Old Time Pottery and the loan's extended stint in special servicing, Morningstar DBRS liquidated the loan in its analysis by applying a 35% haircut to the July 2024 appraisal, resulting in a loss severity of 19.0% and an implied loss of $2.8 million.

As noted above, the largest loan in the pool, 625 Madison Avenue, is secured by the leased-fee interest in the land under a 17-story Class A office tower in Manhattan. SL Green (SLG) was the ground-lease tenant and owned the improvements; however, following a default on the mezzanine loan, SLG also acquired the former sponsor's interest in the land. The senior loan was modified in December 2023 to terminate the ground lease, preapprove an equity transfer in the land interest, and extend the loan maturity to December 2026, with a $25.0 million principal paydown contributed to close the modification. Ross Related Companies (Related) was the equity interest transferee, and SLG and Related have spoken publicly about their plans to redevelop the subject property. A demolition contract was signed in August 2024 to tear down the improvements and construct a new tower that is expected to include hotel, retail, and luxury condominium components. Based on the November 2023 appraisal, the value of the land was reported at $415.1 million, an increase from the $400.0 million appraised land value at issuance, and well above the current whole-loan balance of $168.7 million (subject trust balance of $73.6 million). Given these developments and the estimated land value, Morningstar DBRS expects the loan will ultimately be fully recovered.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.
 
A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (May 16, 2025) at https://dbrs.morningstar.com/research/454196.

Class X-B is an interest-only (IO) certificate that references a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.

All credit ratings are subject to surveillance, which could result in credit ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by Morningstar DBRS.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is North American CMBS Surveillance Methodology (February 28, 2025) https://dbrs.morningstar.com/research/448963.

Other methodologies referenced in this transaction are listed at the end of this press release.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info-DBRS@morningstar.com.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process. Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The Morningstar DBRS Long-Term Obligation Rating Scale definition indicates that credit ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS' outlooks and credit ratings are monitored.

DBRS Limited
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Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

-- North American CMBS Multi-Borrower Rating Methodology (April 9, 2025)/North American CMBS Insight Model v. 1.3.0.0, https://dbrs.morningstar.com/research/451739.
-- Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024), https://dbrs.morningstar.com/research/439702.
-- Legal Criteria for U.S. Structured Finance (December 3, 2024),
https://dbrs.morningstar.com/research/444064.
-- North American Commercial Mortgage Servicer Rankings (August 23, 2024), https://dbrs.morningstar.com/research/438283.

A description of how Morningstar DBRS analyzes structured finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/417279.

For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.