Kroll Bond Rating Agency Assigns Preliminary Ratings to COMM 2014-UBS6

NEW YORK--()--Kroll Bond Rating Agency, Inc. (KBRA) is pleased to announce the assignment of preliminary ratings to 18 classes of the COMM 2014-UBS6 transaction (see ratings list below). COMM 2014-UBS6 is a $1.3 billion CMBS conduit transaction collateralized by 89 fixed rate commercial mortgage loans that are secured by 267 properties.

The underlying collateral properties are located in 37 different states, with two state exposures each representing more than 10.0% of the pool balance: California (14.3%) and New York (12.5%). There is exposure to all of the major property type segments, with four that each account for over 10.0% of the pool: retail (30.6%), hospitality (19.2%), multifamily (17.8%) and office (14.7%). The loans have principal balances ranging from $1.2 million to $104.0 million for the largest loan in the pool, Tops & Kroger Portfolio (8.1%), which is comprised of 11 anchored retail properties located in New York, Ohio and Georgia that together comprise 1.5 million sf. The five largest loans, which also include W Scottsdale (4.6%), Churchill Portfolio (4.4%), Circle K Portfolio (3.7%) and University Village (3.1%), represent 23.9% of the initial pool balance, while the top 10 loans represent 37.4%.

KBRA’s analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts' evaluation of underlying collateral properties' financial and operating performance, which determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our CMBS Property Evaluation Guidelines. On an aggregate basis, KNCF was 4.1% less than the issuer cash flow. KBRA capitalization rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 34.0% less than third party appraisal values. The pool has an in-trust KLTV of 100.7% and an all-in KLTV of 102.1%. The model deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each collateral loan, which are then used to assign our credit ratings.

For complete details on the analysis, please see our presale report, COMM 2014-UBS6 published today at www.kbra.com. The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: COMM 2014-UBS6

Class       Class Balance (US$)       Expected Rating
Class A-1       57,028,000       AAA(sf)
Class A-2       102,973,000       AAA(sf)
Class A-3       22,897,000       AAA(sf)
Class A-SB       97,350,000       AAA(sf)
Class A-4       275,000,000       AAA(sf)
Class A-5       337,653,000       AAA(sf)
Class X-A       990,164,000*       AAA(sf)
Class A-M       97,263,000       AAA(sf)
Class B       57,400,000       AA(sf)
Class PEZ       220,037,000**       A-(sf)
Class C       65,374,000       A-(sf)
Class X-B       122,774,000*       AAA(sf)
Class X-C       60,589,000*       BBB-(sf)
Class X-D       33,484,000*       BB(sf)
Class X-E       68,562,796*       NR
Class D       60,589,000       BBB-(sf)
Class E       12,756,000       BBB-(sf)
Class F       20,728,000       BB(sf)
Class G       28,701,000       B-(sf)
Class H       39,861,796       NR

* Notional balance

** Represents the maximum amount of Class PEZ certificates that could be issued in an exchange.

17g-7 Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled CMBS: COMM 2014-UBS6 17g-7 Disclosure Report.

Related publications (available at www.kbra.com):

CMBS: COMM 2014-UBS6 Presale Report

CMBS: U.S. CMBS Multi-Borrower Rating Methodology, published February 23, 2012CMBS Property Evaluation Guidelines, published June 10, 2011

About Kroll Bond Rating Agency KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Kroll Bond Rating Agency, Inc.
Analytical Contacts:
Ravish Kamath
(646) 731-2328
rkamath@kbra.com
or
Michael Brown
(646) 731-2307
mbbrown@kbra.com
or
Dayna Volpe
(646) 731-2391
dvolpe@kbra.com
or
Ken Kor
(646) 731-2339
kkor@kbra.com
or
Follow us on Twitter!
@KrollBondRating

Contacts

Kroll Bond Rating Agency, Inc.
Analytical Contacts:
Ravish Kamath
(646) 731-2328
rkamath@kbra.com
or
Michael Brown
(646) 731-2307
mbbrown@kbra.com
or
Dayna Volpe
(646) 731-2391
dvolpe@kbra.com
or
Ken Kor
(646) 731-2339
kkor@kbra.com
or
Follow us on Twitter!
@KrollBondRating