Fitch Ratings has affirmed 12 classes of JPMBB Commercial Mortgage Securities Trust 2014-C19 (JPMBB 2014-C19).

Fitch has maintained a Negative Outlook on classes D and E.

RATING ACTIONS

Entity / Debt

Rating

Prior

JPMBB 2014-C19

A-3 46641WAU1

LT

AAAsf

Affirmed

AAAsf

A-4 46641WAV9

LT

AAAsf

Affirmed

AAAsf

A-S 46641WAZ0

LT

AAAsf

Affirmed

AAAsf

A-SB 46641WAW7

LT

AAAsf

Affirmed

AAAsf

B 46641WBA4

LT

AA-sf

Affirmed

AA-sf

C 46641WBB2

LT

A-sf

Affirmed

A-sf

D 46641WAG2

LT

BBB-sf

Affirmed

BBB-sf

E 46641WAJ6

LT

B-sf

Affirmed

B-sf

EC 46641WBC0

LT

A-sf

Affirmed

A-sf

Page

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VIEW ADDITIONAL RATING DETAILS

KEY RATING DRIVERS

Increase in Loss Expectations: Fitch's pool loss expectations have increased slightly from the prior rating action. Fourteen loans (49.8% of pool) have been designated Fitch Loans of Concern (FLOCs), including four specially serviced loans (7.2%) and loans flagged due to high vacancy, upcoming rollover concerns and/or pandemic-related underperformance. The Outlooks remain Negative on classes D and E due to the high FLOC exposure and concerns with upcoming maturities of retail and office loans. Fitch's ratings incorporate a base case loss of 8.9%.

The largest contributor to losses and largest specially serviced loan is Muncie Mall (4.2% of the pool). Losses for this loan have increased since Fitch's last rating action due to growing exposure. Muncie Mall, secured by a 581,492-sf portion of a regional mall located in Muncie, IN, transferred to special servicing in February 2020 due to imminent default. The mall has lost several of its original anchor tenants including Sears (formerly 24.7% of collateral NRA), Carsons (15.2%), which closed in August 2018; the non-collateral Macy's, which closed in February 2020; and, JC Penney, which closed in June 2020. Fitch is modeling a full loss on the asset.

Three other loans are specially serviced loans (3% of the pool), including two hotel backed loans. Fitch's analysis used recent servicer provided valuations in its analysis; total modeled losses on these three loans is marginally lower than prior rating actions. The largest specially serviced hotel loan is Holiday Inn Rock Hill (1.1%), located in Rock Hill, SC. The borrower filed for bankruptcy and the workout is ongoing.

Retail/Mall Exposure: Of the remaining pool, retail properties back 68.7% of the loans remain. The largest remaining loan in the pool is The Outlets at Orange (FLOC, 16.8%). Overall performance has been stable with recent occupancy reported at 98%. Anchor tenants include AMC Theatres (13% of NRA, lease expires YE 2024), Dave and Busters (6.9%, January 2024), Esporta (LA Fitness 4.4%, October 2024) and Nordstrom Rack (4.1%, renewed to 2027). The Van's Skate Park (4.9% of NRA) had a 2022 lease expiration. Fitch requested a leasing update. Fitch applied a total 10% haircut to YE 2021 NOI due to high concentration of experiential tenancy and near-term lease rollover.

The second largest loan in the pool is Arundel Mills & Marketplace (FLOC, 12.1%) is secured by a super-regional mall, and an adjacent one-story, anchored shopping center located in Hanover, MD. Major anchor tenants at the Arundel Mills property include Bass Pro Shops Outdoor (9.9% of NRA, lease expires October 2026), Cinemark Theatres (8.3%, December 2025), Burlington (6.3%, January 2026) and T.J. Maxx (2.6%, January 2026). Anchor tenants at the Marketplace property include Aldi (32.6%, 2033), Michael's (23.5%, March 2023). Fitch has requested a leasing update. Fitch's loss expectation of approximately 6% reflects a total 10% haircut to YE 2021 NOI and a 12.5% cap rate to reflect regional mall nature of the collateral, near-term lease rollover and volatility associated with the casino component/gaming revenue.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative rating action/downgrade:

Downgrades would occur with an increase in pool-level losses from underperforming or specially serviced loans. Downgrades to classes A-3 through A-S and class X-A are not likely due to the position in the capital structure, but may occur should interest shortfalls affect these classes. Downgrades to classes B, C, X-B and EC are possible should expected losses for the pool increase significantly. A downgrade to classes D and E is possible should performance of the FLOCs continue to decline, should additional loans transfer to special servicing, loans do not payoff at maturity and/or should FLOCs not stabilize. Further downgrades to classes F would occur as losses are realized and/or greater certainty of loss.

Fitch has identified both a baseline and a worse-than-expected, adverse stagflation scenario based on fallout from the Russia-Ukraine war whereby growth is sharply lower amid higher inflation and interest rates; even if the adverse scenario should play out, Fitch expects virtually no impact on ratings performance, indicating very few rating or Outlook changes. However, for some transactions with concentrations in underperforming retail exposure, the ratings impact may be mild to modest, indicating some changes on sub-investment-grade notes.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

Upgrades to classes B, C, X-B and EC could occur with significant improvement in CE due to loan payoffs, amortization and/or defeasance; however, adverse selection, increased concentrations and/or further underperformance of the FLOCs could offset the improvement in CE. Classes would not be upgraded above 'Asf' if interest shortfalls are likely. An upgrade to class D would be limited based on sensitivity to concentrations or the potential for future concentration. Classes E and F are unlikely to be upgraded absent significant performance improvement on the FLOCs, substantially higher recoveries than expected on the specially serviced loans/assets and sufficient CE to the classes.

Best/Worst Case Rating Scenario

International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.

Additional information is available on www.fitchratings.com

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