OREANDA-NEWS. Fitch Ratings has affirmed all classes of COMM 2014-277P Mortgage Trust, commercial mortgage pass-through certificates. A full list of rating actions follows at the end of this ratings action commentary.

KEY RATING DRIVERS
The affirmations and Stable Outlooks reflect stable collateral performance since issuance.

Given the transaction's recent issuance, the most recently reported financials Fitch obtained were for the year-to-date period ending March 31, 2015. Over this period, the servicer-reported net cash flow debt service was 3.31x compared to 3.02x underwritten at issuance. According to the April 2015 rent roll, the property was 91.75% leased compared to 98% at issuance. The decline, which was anticipated by Fitch at issuance, was primarily attributed to the largest tenant, JPMorgan Chase (JPM), vacating the portion of its lease that expired in February 2015 and Contigroup Companies, Inc. vacating at its February 2015 lease expiration.

The two largest tenants, JPM (69.5% of total square footage; rated 'A+' by Fitch) and Sumitomo Mitsui Banking Corp. (Sumitomo; 9.6% of total square footage; rated 'A-'), occupy approximately 79% of the total property square footage. JPM subleases approximately 43% of its leased space (30% of total building square footage) to multiple subtenants. Tenants with investment-grade credit ratings account for 81% of the total property square footage.

Approximately 86% of the total square footage rolls prior to the loan's August 2024 anticipated repayment date (ARD). Although the majority of the rollover is associated with the two largest tenants which both roll in 2021, in-place base rents, which average approximately \\$60 per square foot (psf) according to the April 2015 rent roll, are considered below-market. According to REIS and as of first quarter 2015, market vacancy and asking rents for class A office space in the Grand Central submarket was 8.9% and \\$80.95 psf, respectively. Further, JPM is required to provide 18 months' advance notice of renewal under its lease; otherwise, a cash flow sweep will occur 12 months prior to JPM's roll or notice of nonrenewal, capped at \\$40 million, for re-tenanting costs.

The transaction certificates, which follow a sequential-pay structure, represent the beneficial interests in the mortgage loan securing the fee interest in 277 Park Avenue, a 51-story, 1.78 million sf class A office building located in the Grand Central submarket of Midtown Manhattan. Loan proceeds were used to refinance existing first mortgage and mezzanine debt, fund up-front reserves, and pay defeasance and closing costs. Non-recourse carveouts, including fraud, waste and misappropriation, are limited to the special purpose entity borrower. The loan is sponsored by the estate of Stanley Stahl.

The loan is interest-only (annual interest rate of 3.624%) prior to its 10-year ARD of Aug. 6, 2024. Should the loan not pay off by the ARD, the interest rate will increase to higher of the in-place rate plus 350 bps (7.124%) or the 10-year swap rate on the ARD plus 450 bps, with at least 80% of excess cash flow applied to pay down principal.

RATING SENSITIVITIES
All classes maintain Stable Outlooks. No rating actions are expected unless there are material changes in property occupancy or cash flow. Property performance remains consistent with issuance.

Initial rating sensitivities are further described in the new issue report titled 'COMM 2014-2014-277P Mortgage Trust (Aug. 4, 2014)', which is available at 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 ratings:

--\\$570 million class A at 'AAAsf'; Outlook Stable;
--\\$84 million class B at 'AA-sf'; Outlook Stable;
--\\$68 million class C at 'A-sf'; Outlook Stable;
--\\$28 million class D at 'BBB+sf'; Outlook Stable.

The rating on the class X-A certificates was previously withdrawn.