KBRA Downgrades Five Ratings and Affirms All Other Ratings For COMM 2014-UBS4

KBRA downgrades the ratings of five classes of certificates and affirms all other outstanding ratings for COMM 2014-UBS4, an $889.5 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has had an increase in estimated losses for five specially serviced K-LOCs (22.5% of the pool balance) since KBRA's last ratings adjustment in April 2023. The rating actions also consider the risk that interest shortfalls may increase and rise up the capital structure as the special servicer works to resolve the specially serviced loans.

As of the April 2024 remittance period, there are six specially serviced assets (34.3% of the pool balance), of which three are REO (2.4%), two are 90+ days delinquent (17.5%), and one is matured and performing (14.4%). KBRA identified 16 K-LOCs (46.8%), including the specially serviced assets. Of the K-LOCs, eight (35.0%) have estimated losses. The K-LOCs include:

Four of the top 10 loans (34.9%):

Five other K-LOCs have estimated losses (3.1%):

The remaining seven K-LOCs do not have estimated losses and represent 8.8% of the pool balance

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 86.6%, compared to 103.3% at KBRA’s last ratings change and 102.3% at securitization. The KDSC is 1.22x, compared to 1.24x at KBRA’s last ratings change and 1.50x at securitization.

Details concerning the classes with ratings changes are as follows:

To access rating and relevant documents, click here.

Click here to view the report.

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