Press Release|CMBS

KBRA Downgrades Five Ratings and Removes Them From Watch for COMM 2014-UBS3

19 Mar 2024   |   New York


KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings for COMM 2014-UBS3, a $605.1 million CMBS conduit transaction. Simultaneously, five classes have been removed from Watch Downgrade (DN), where they were placed on December 20, 2023. The rating actions follow a surveillance review of the transaction, which has which has had a meaningful increase in KBRA's estimated losses on three K-LOC loans (23.8%) since our last surveillance review. The rating actions also consider the deleveraging of the transaction from loan payoffs, amortization and defeasance as well as the near-term maturities of the remaining loans.

As of the March 2024 remittance period, there are four specially serviced assets (36.2%), of which one is REO (7.5%) and one (0.5%) is 90+ days delinquent.

KBRA identified seven K-LOCs (53.6%), four of which (24.3%) have estimated losses. This includes:

Six of the top 10 assets (53.1%):

  • State Farm Portfolio (2nd largest, 16.5%)
  • Equitable Plaza (3rd largest, 14.5%, 16.5% estimated loss severity)
  • Southfield Town Center (4th largest, 11.7%)
  • 1100 Superior Avenue (5th largest, 7.5%, 75.5%)
  • Holiday Inn Express & Suites Santa Cruz (8th largest, 1.8%, 20.9%)
  • Hilltop Shopping Center (10th largest, 1.1%)

One other K-LOC has an estimated loss:

  • Executive Center IV (0.5%, 17.3%)

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 103.6%, compared to 99.9% at KBRA's last ratings change and 106.1% at securitization. The KDSC is 1.48x, compared to 1.52x at KBRA's last ratings change and 1.50x at securitization.

  • Class D to BB- (sf) from BBB- (sf) DN
  • Class E to B- (sf) from BB- (sf) DN
  • Class F to CC (sf) from B- (sf) DN
  • Class G to C (sf) from CC (sf) DN
  • Class X-C to CC (sf) from B- (sf) DN

To access rating and relevant documents, click here.

Click here to view the report.

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Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003574

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