CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 17 classes of COMM 2014-UBS6 pass-through certificates, which were issued by Deutsche Bank Securities, Inc. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are due to the overall stable performance of the underlying collateral pool. Fitch reviewed the most recently available financial performance data for the pool, as well as updated rent rolls for the top 15 loans, which represent 49.1% of the transaction. Of the loans in the pool, 65.9% reported 2014 year-end financials.
As of the September 2015 distribution date, the pool's aggregate principal balance has been reduced by 0.5% to $1.27 billion from $1.28 billion at issuance. Currently, there are no specially serviced or defeased loans. Fitch has designated two loans (3.2%) as Fitch Loans of Concern, one of which is also reported on the servicer Watchlist.
The largest Fitch Loan of Concern, 811 Wilshire (3.1%), is collateralized by a 336,190 square foot office building located in downtown Los Angeles. This property recently experienced an explosion leading to a fire and flooding in its basement. The building was deemed unsafe for occupancy on Aug. 20, 2015; however, all tenants resumed occupancy on Sept. 25, 2015. The property maintains comprehensive property insurance including business interruption coverage. Fitch will continue to monitor this property closely based on the structural damage to the building, operating performance below expectations prior to the fire, and upcoming lease rollover.
The largest loan in the pool, Tops & Kroger Portfolio (8.2%), is a 10-year interest-only (I/O) loan secured by 11 anchored shopping centers totaling approximately 1.5 million square feet located in New York, Ohio, and Georgia. The loan is performing in line with underwriting at issuance. The servicer reported 3.46x debt service coverage ratio (DSCR) for the six months ended June 2015 compared with 3.02x at issuance. Occupancy was 94% as of June 2015 and was up from 92% at issuance.
The second largest loan, W Scottsdale, is secured by a 224-key, 8-story, full-service hotel, located in Scottsdale, AZ. This loan has performed above underwriting at issuance. The property reflects a 3.76x June 2015 trailing 12 months (TTM) debt service coverage ratio (DSCR) compared with a 3.10x year-end 2014 DSCR. Per its June 2015 Smith Travel Research (STR) Report the property reflected TTM occupancy of 73.8%, average daily rate (ADR) of $258.7, and revenue per available room (RevPAR) of $190.8. This represents market penetration of 110.3%, 114.2%, and 126% for occupancy, ADR, and RevPAR, respectively.
The third largest loan (4.4%) in the pool, Churchill Portfolio, is secured by a portfolio of 20 manufactured housing communities totaling 3,390 pads, and 11 self-storage facilities, totaling 5,122 units. This property has performed in line with underwriting at issuance, with portfolio-level year-end 2014 net operating income 1.2% above bank underwriting. Occupancy was 61% as of June 2015 which was in line with occupancy at issuance.
RATING SENSITIVITIES
The Rating Outlooks on all classes remain Stable. Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's overall portfolio-level metrics. Additional information on rating sensitivity is available in the report 'COMM 2014-UBS6 Mortgage Trust' (Nov. 17, 2014), available at www.fitchratings.com.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch affirms the following classes as indicated:
--$50.6 million class A-1 at 'AAAsf', Outlook Stable;
--$103.0 million class A-2 at 'AAAsf', Outlook Stable;
--$22.9 million class A-3 at 'AAAsf', Outlook Stable;
--$97.4 million class A-SB at 'AAAsf', Outlook Stable;
--$275.0 million class A-4 at 'AAAsf', Outlook Stable;
--$337.7 million class A-5 at 'AAAsf', Outlook Stable;
--$97.3 million class A-M at 'AAAsf', Outlook Stable;
--$57.4 million class B at 'AA-sf', Outlook Stable;
--$220.0 million class PEZ at 'A-sf', Outlook Stable;
--$65.4 million class C at 'A-sf', Outlook Stable;
--$60.6 million class D at 'BBB-sf', Outlook Stable;
--$12.8 million class E at 'BB+sf', Outlook Stable;
--$20.7 million class F at 'BB-sf', Outlook Stable;
--Interest-Only class X-A at 'AAAsf'; Outlook Stable;
--Interest-Only class X-B at 'A-sf'; Outlook Stable;
--Interest-Only class X-C at 'BBB-sf'; Outlook Stable;
--Interest-Only class X-D at 'BB-sf'; Outlook Stable.
Fitch does not rate classes G, H, or X-E.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=993841
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=993841
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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