Fitch Downgrades One Class of BSCMS 2006-PWR14

Fitch Ratings has downgraded one and affirmed 18 classes of Bear Stearns Commercial Mortgage Securities Trust, series 2006-PWR14 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of the release.

KEY RATINGS DRIVERS

The downgrade is a result of increased loss expectations on the already specially serviced assets, since the previous rating action. Affirmations on the remaining classes are due to sufficient credit enhancement to withstand modeled losses. Fitch modeled losses of 9.3% of the remaining pool and expected losses based on the original pool balance are 11.4%, of which 4.4% are losses realized to date. Fitch designated 64 loans (32.6%) as Fitch Loans of Concern, which includes eight specially serviced assets (5.5%).

As of the October 2014 distribution date, the pools' aggregate principal balance has been reduced by 24.3% (including 4.4% of realized losses) to $1.9 billion from $2.5 billion at issuance. Interest shortfalls are affecting classes E through P. Three loans (0.6%) are defeased.

The largest contributor to Fitch's modeled losses is the specially serviced loan, Philips at Sunrise Shopping Center (3.5% of the pool). The loan is collateralized by a 414,082 square foot (sf) retail center located in Massapequa, NY. The loan has remained with the special servicer due to an ongoing dispute between the lender and sponsor in regard to loan covenants. The special servicer reported that the center's cash flow is now covering debt service.

The second largest contributor to Fitch's modeled losses is a 390,957 sf shopping center (3.4%) located in Cincinnati, OH. The loan became fully amortizing at the beginning of 2013, which has put additional stress on the property's cash flow. This, along with a decline in performance, caused debt service coverage ratio (DSCR) to decline from 1.13x at year-end 2012 to 0.89x at year-end 2013.

The third largest contributor to Fitch's modeled losses is One Newark Center (4.9%), a 418,026 sf office building located in the Newark, NJ central business district. The loan was modified into an A/B note structure, with a $5 million paydown of the principal balance and the term of the loan extended 72 months to Dec. 1, 2017. The loan modification was completed in August 2013 and the loan returned to the master servicer as corrected in October 2013. However, occupancy and DSCR at the property declined to 83.6% and 1.27x, respectively, as of June 2014, from 98.4% and 1.77x, as of year-end 2013.

RATING SENSITIVITIES

Ratings on classes A1-A through A-4 are expected to remain stable due to sufficient credit enhancement. The Negative Outlook on the class A-M notes reflects Fitch's concern around the second largest loan in the pool, South Bay Galleria (4.7%). One of the property's anchors, Nordstrom, is relocating to a new center under construction approximately three miles south of the property. Fitch will continue to monitor the loan for further vacating tenants. Downgrades to the distressed classes (those rated below 'B') are likely as losses are realized on specially serviced loans.

Fitch downgrades the following class as indicated:

--$222.1 million class A-J to 'CCCsf/RE 100%' from 'BBsf'.

Fitch affirms the following classes as indicated:

--$18.8 million class A-3 at 'AAAsf'; Outlook Stable;

--$44.9 million class A-AB at 'AAAsf'; Outlook Stable;

--$950.9 million class A-4 at 'AAAsf'; Outlook Stable;

--$219.4 million class A-1A at 'AAAsf'; Outlook Stable;

--$246.8 million class A-M at 'AAAsf'; Outlook to Negative from Stable;

--$46.3 million class B at 'CCCsf'; RE 15%;

--$24.7 million class C at 'CCsf'; RE 0%;

--$37 million class D at 'CCsf'; RE 0%;

--$21.6 million class E at 'Csf'; RE 0%

--$24.7 million class F at 'Csf'; RE 0%

--$8.2 million class G at 'Dsf'; RE 0%.

Fitch does not rate class P. Class A-1 and A-2 have paid in full. Class H, J, K, L, M, N, and O are affirmed at 'Dsf/RE 0%' due to losses incurred.

Fitch has previously withdrawn the ratings on the interest-only classes X-1, X-2 and X-W.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=904914

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