*Interest-only and notional amount.
The certificates in this transaction represent the beneficial interests in a trust that holds a two-year floating-rate mortgage loan secured by 167 skilled nursing facilities located in 29 states across the U.S. The loan is sponsored by
KEY RATING DRIVERS
Leverage Metrics: The
Additional Debt: In addition to the trust debt, there is a
Operational Aspects of Skilled Nursing: The portfolio is comprised of 100% skilled nursing properties which have higher operational risk factors than other property types. The stress applied in Fitch's net cash flow (NCF) and the application of conservative DSCR and loan to value (LTV) attachment points address the operational risk associated with the portfolio.
Diverse Portfolio: The portfolio exhibits geographic diversity across primary and secondary markets in 29 states. The largest state exposure is
Property Age and Condition: The properties are older and were constructed between 1928 and 2001 with the average property being built in 1973. Fitch considers the properties to be in fair condition overall. Approximately 77.2% of the properties by allocated loan balance received a Fitch property quality score of B- or below. Fitch observed a wide disparity in property quality, maintenance and staff engagement across the portfolio.
Fitch found that the pool could withstand an 81.3% decline in appraised value and an approximately 86.3% decrease in the Fitch NCF prior to experiencing
Fitch evaluated the sensitivity of the ratings of class A (rated 'AAAsf' by Fitch) and found that a 7.9% decline in Fitch NCF would result in a one category downgrade. Additionally, a 42.7% decline would result in a downgrade to below investment grade. The 'Rating Sensitivities' section in Fitch's new issue report includes a detailed explanation of additional stresses and sensitivities.
Key rating drivers and rating sensitivities are further detailed in the accompanying new issue report, available at 'www.fitchratings.com' or by clicking on the link at the end of the press release.
Additional information is available at 'www.fitchratings.com'.
--'Global Structured Finance Rating Criteria' (
--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (
--'Criteria for Special-Purpose Vehicles in Structured Finance Transactions' (
--'Counterparty Criteria for Structured Finance and Covered Bonds (
--'Rating Criteria for U.S. Commercial Mortgage Servicers' (
--'COMM 2014-SAVA (US CMBS)' (
--'COMM 2014-SAVA - Appendix, (
Counterparty Criteria for Structured Finance and Covered Bonds
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
Rating Criteria for U.S. Commercial Mortgage Servicers
COMM 2014-SAVA (US CMBS)
COMM 2014-SAVA -- Appendix
Global Structured Finance Rating Criteria
Source: Fitch Ratings
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