Fitch to Rate UBS-Barclays Commercial Mortgage Trust 2013-C6; Presale Issued

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has issued a presale report on Barclays Capital Inc.'s UBS-Barclays Commercial Mortgage Trust 2013-C6 Commercial Pass-Through Certificates (UBS-BB 2013-C6).

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

--$65,700,000 class A-1 'AAAsf'; Outlook Stable;

--$43,000,000 class A-2 'AAAsf'; Outlook Stable;

--$250,000,000 class A-3 'AAAsf'; Outlook Stable;

--$461,130,000 class A-4 'AAAsf'; Outlook Stable;

--$250,000,000a class A-3FL 'AAAsf'; Outlook Stable;

--$0a class A-3FX 'AAAsf'; Outlook Stable;

--$87,000,000 class A-SB 'AAAsf'; Outlook Stable;

--$111,734,000 class A-S 'AAAsf'; Outlook Stable;

--$1,018,564,000 a,b class X-A 'AAAsf'; Outlook Stable;

--$140,883,000 a,b class X-B 'A-sf'; Outlook Stable;

--$90,683,000a class B 'AA-sf'; Outlook Stable;

--$50,200,000a class C 'A-sf'; Outlook Stable;

--$48,580,000a class D 'BBB-sf'; Outlook Stable;

--$25,910,000a class E 'BBsf'; Outlook Stable;

--$19,432,000a class F 'Bsf'; Outlook Stable.

a Privately placed pursuant to Rule 144A.

b Notional amount and interest only.

The expected ratings are based on information provided by the issuer as of April 3, 2013. Fitch does not expect to rate the $42,102,979 class G or $87,444,979 interest-only class X-C.

The certificates represent the beneficial ownership in the trust, primary assets of which are 73 loans secured by 91 commercial properties having an aggregate principal balance of approximately $1.3 billion as of the cutoff date. The loans were contributed to the trust by UBS Real Estate Securities, Inc., Barclays Bank PLC, Redwood Commercial Mortgage Corporation and Natixis Real Estate Capital LLC.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 82.1% of the properties and cash flow analysis on 82.1% of the collateral pool by balance.

The transaction has a Fitch stressed debt service coverage ratio (DSCR) of 1.37x, a Fitch stressed loan-to-value (LTV) of 98.2%, and a Fitch debt yield of 11.2%. Fitch's aggregate net cash flow represents a variance of 10.2% to issuer cash flows.

KEY RATING DRIVERS

Fitch Leverage: This transaction has slightly higher coverage and leverage in line with rated 2012 deals, with a Fitch Ratings stressed DSCR of 1.37x and a Fitch stressed LTV of 98.2%. The average 2012 Fitch DSCR and LTV were 1.24x and 97.1%, respectively. However, leverage is slightly below that of transactions seen from fourth-quarter 2012 to date.

Concentrated Transaction: The top 10 loans account for 59.6% of the pool; the LCI and SCI are 482 and 593, respectively. This represents a top 10 loan concentration generally in line with most 2012 transactions, which averaged 59.9%. The top 10 concentration for 2011 deals averaged 54.2%.

High Quality Assets in Major Markets: Four of the top 10 loans, totaling 29.6% of the pool, are secured by high-performing assets in major urban markets. Three of the assets are located in New York City and one in Philadelphia.

Less Amortization and More Interest-Only Loans: The pool amortizes by approximately 12.7% from aggregate cutoff balance to aggregate maturity balance. Of note, 37.2% of the pool is composed of interest-only loans, and 19.3% are partial interest-only loans, prior to amortizing.

RATING SENSITIVITIES

Fitch performed several stress scenarios in which the Fitch NCF was stressed. Fitch performed two model-based break-even analyses to determine the level of cash flow and value deterioration the pool could withstand prior to $1 of loss being experienced by the 'BBB-sf' and 'AAAsf' rated classes. Fitch found that the UBS-BB 2013-C6 pool could withstand a 43.1% decline in value (based on appraised values at issuance) and an approximately 25.2% decrease to the most recent actual cash flow prior to experiencing $1 of loss to the 'BBB-sf' rated class. Additionally, Fitch found that the pool could withstand a 50.1% decline in value and an approximately 34.4% decrease in the most recent actual cash flow prior to experiencing $1 of loss to any 'AAAsf' rated class.

The Master Servicer and Special Servicer will be Midland Loan Services, Inc. and Rialto Capital Management LLC, rated 'CMS1' and 'CSS2-' respectively, by Fitch.

The presale report is available at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions' (Aug. 12, 2011);

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (Sep. 26, 2011);

--'Global Structured Finance Rating Criteria' (Aug. 4, 2011);

--'Criteria for Special-Purpose Vehicles in Structured Finance Transactions' (June 13, 2011);

--'U.S. Commercial Mortgage Servicer Rating Criteria' (Feb. 18, 2011);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012);

--'Counterparty Criteria for Structured Finance Transactions' (March 14, 2011).

Applicable Criteria and Related Research UBS-Barclays Commercial Mortgage Trust 2013-C6

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704756

Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685995

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=688831

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

Criteria for Special-Purpose Vehicles in Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=680591

U.S. Commercial Mortgage Servicer Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969

Counterparty Criteria for Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678938

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