Fitch Affirms CMLS 2014-1; Removes Class G from Rating Watch Negative

(The following statement was released by the rating agency)NEW YORK, August 11 (Fitch) Fitch Ratings has affirmed all rated classes of CMLS Issuer Corp.'s (CMLSI) commercial mortgage pass-through certificates, series 2014-1, including class G, which has been removed from Rating Watch Negative. A detailed list of rating actions follows at the end of this release. KEY RATING DRIVERSThe affirmations and the removal of class G from Rating Watch Negative reflect the overall stable performance of the pool in addition to the Clearwater Suites property being fully operational after the Fort McMurray, Alberta area was evacuated due to wildfires in May 2016. There have been no delinquent or specially serviced loans since issuance. The certificates represent the beneficial ownership in the trust, primary assets of which are 36 Canadian loans secured by 40 commercial properties having an aggregate principal balance of approximately C$269.7 million as of the July 2016 distribution. The pool has a weighted average amortization term of approximately 25 years, which represents faster amortization than U.S. conduit loans. There are no full-term interest-only loans. The pool's scheduled maturity balance represents a paydown of 21.1% of the July 2016 balance and 24.1% from the original issuance balance. Of the pool, 82.5% of the loans feature full or partial recourse to the borrowers and/or sponsors. The ratings reflect strong historical Canadian commercial real estate loan performance, including a low delinquency rate and low historical losses of less than 0.1%, as well as positive loan attributes, such as short amortization schedules, recourse to the borrower, and additional guarantors. The largest loan in the pool is the Zzen Portfolio (16% of the pool), which is secured by five cross-collateralized and cross-defaulted loans, secured by three industrial properties, one hotel, and an unanchored shopping center in Vaughan, ON. The loans are full recourse to the borrower. The loan is sponsored by Vic De Zen, Dominic D'Amico, and Fortunato Bordin. The hotel is a 152-key Westin Element that was developed in 2013. The second largest loan is the Royal Henley Retirement Residence (8.2% of the pool), which is secured by a 118-unit senior housing community in St. Catharines, ON. The subject, which was constructed in 2010, is composed of an 80%/20% split between independent living and assisted living units. Common area amenities include dining rooms, lounge areas, a fitness center, pool, cafe, and a salon and spa. As of the servicer-provided June 2016 rent roll, the property was approximately 90% occupied.RATING SENSITIVITIESThe Rating Outlooks on all classes remain Stable as the pool seasons and the Fort McMurray property recovers. If there are significant performance declines or prolonged impact on loan performance and property values from the downturn in energy prices, downgrades could be possible. However, any potential losses could be mitigated by loan recourse provisions. DUE DILIGENCE USAGE No third-party due diligence was provided or reviewed in relation to this rating action.Fitch affirms and removes the following class from Rating Watch Negative and assigns a Stable Outlook as indicated:--C$2.8 million class G at 'Bsf'; Outlook Stable.Fitch affirms the following ratings:--C$122.1 million class A-1 at 'AAAsf'; Outlook Stable;--C$109.6 million class A-2 at 'AAAsf'; Outlook Stable;--C$6 million class B at 'AAsf'; Outlook Stable;--C$8.9 million class C at 'Asf'; Outlook Stable;--C$8.5 million class D at 'BBBsf'; Outlook Stable;--C$3.5 million class E at 'BBB-sf'; Outlook Stable;--C$2.8 class F at 'BBsf'; Outlook Stable.Fitch does not rate the interest-only class X or the C$5.3 million non-offered class H.Contacts: Primary Analyst Jeffrey DilibertoDirector+1-312-368-3268Fitch Ratings, Inc.70 West Madison StreetChicago, IL 60602Committee Chairperson Mary MacNeillManaging Director+1-212-908-0785Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278, Email: sandro.scenga@fitchratings.com.Additional information is available at www.fitchratings.com.Applicable Criteria Counterparty Criteria for Structured Finance and Covered Bonds (pub. 18 Jul 2016)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=884963Global Structured Finance Rating Criteria (pub. 27 Jun 2016)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=883130U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395Related Research CMLSI 2014-1 -- Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=815128Additional Disclosures Dodd-Frank Rating Information Disclosure Form https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr _id=1010270Solicitation Status https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1010270Endorsement Policy https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&det ail=31ALL 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.