NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 14 classes of UBS-Barclays Commercial Mortgage Trust (UBS-BB) commercial mortgage pass-through certificates series 2013-C5. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are based on the stable performance of the underlying collateral pool. As of the January 2015 distribution date, the pool's aggregate principal balance has been reduced by 3% to $1.44 billion from $1.49 billion at issuance. Per the servicer, one loan (0.9% of the pool) is defeased. Fitch has designated five loans (1.5% of the pool) as Fitch Loans of Concern, which includes two specially serviced assets (0.6%); and three other loans with servicer reported debt service coverage ratios (DSCR) at or below 1.0x generally related to occupancy issues. Interest shortfalls are currently affecting the non-rated class G.
The largest loan (14.9% of the pool) is secured by 950,000 square feet (sf) of the 1.2 million sf Santa Anita Mall located in Arcadia, CA. The property rent roll is diverse, with over 200 tenants in occupancy. Anchors include Macy's, Nordstrom and J.C. Penney, which are not part of the collateral. As of year to date (YTD) Sept. 30, 2015, the servicer reported occupancy and debt service coverage ratio (DSCR) were 91% and 2.88x, respectively.
The second largest loan (13.5% of the pool) is secured by 650,000 sf of a 1.1 million sf regional mall located in Valencia, CA. Anchors include Macy's, J.C. Penney and Sears, which are not part of the collateral. Edwards Theatres is the largest collateral tenant at 10% of net rentable area (NRA). As of YTD Sept. 30, 2015, the servicer reported occupancy and DSCR were 94.3% and 3.01x, respectively.
Of the Top 15 loans, three have significant tenant rollover risk through 2016. The Starwood Office Portfolio (9% of the pool) and 155 Fifth Avenue (1.9% of the pool) each have approximately 30% of their leases expiring in 2016. Tisch Tower (1.8% of the pool) has over 40% of its leases through 2016, respectively. Cash management triggers have been activated for the Starwood Office Portfolio and 155 Fifth Avenue. Fitch will monitor the performance of each loan as leasing status updates are received.
RATING SENSITIVITIES
All classes maintain Stable Outlooks. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics.
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:
--$37.5 million class A-1 at 'AAAsf'; Outlook Stable;
--$17 million class A-2 at 'AAAsf'; Outlook Stable;
--$200 million class A-3 at 'AAAsf'; Outlook Stable;
--$629.5 million class A-4 at 'AAAsf'; Outlook Stable;
--$110.5 million class A-AB at 'AAAsf'; Outlook Stable;
--$120.7 million class A-S* at 'AAAsf'; Outlook Stable;
--$96.5 million class B* at 'AA-sf'; Outlook Stable;
--$0 class EC at 'A-sf'; Outlook Stable;
--$57.5 million class C* at 'A-sf'; Outlook Stable;
--$70.5 million class D at 'BBB-sf'; Outlook Stable;
--$27.8 million class E at 'BBsf'; Outlook Stable;
--$27.8 million class F at 'Bsf'; Outlook Stable.
--$1,160.2 million** class X-A at 'AAAsf'; Outlook Stable;
--$96.5 million** class X-B at 'AA-sf'; Outlook Stable.
*Class A-S, class B and class C certificates may be exchanged for class EC certificates, and class EC certificates may be exchanged for class A-S, class B and class C certificates.
**Notional amount and interest-only.
Fitch does not rate the class G certificates.
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. 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=873395
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=998667
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=998667
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
ALL 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.