KBRA Downgrades Three Ratings, Withdraws One Rating, and Affirms All Other Ratings for COMM 2014-UBS5

KBRA downgrades the ratings of three classes of certificates, withdraws the rating for one class, and affirms all other outstanding ratings for COMM 2014-UBS5, a $678.9 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in estimated losses since KBRA’s last rating adjustments in July 2021. The transaction, however, has benefited from deleveraging due to principal paydowns and defeasance. KBRA withdraws its AAA (sf) rating on Class A-3 following the reduction of the principal balance of the stated security to zero as reflected in the transaction’s June 2024 remittance report. There were no principal losses or interest shortfalls reported on the withdrawn rated security during its life.

As of the June 2024 remittance period, there are six specially serviced assets (24.6% of the pool). KBRA identified nine K-LOCs (33.5%), including the specially serviced assets. The K-LOCs include five of the top 10 loans (25.7%):

Four other K-LOCs (7.8%) have estimated losses:

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 84.4% compared to 111.1% at KBRA’s last ratings change and 100.6% at securitization. The KDSC is 1.66x, compared to 1.38x at KBRA’s last ratings change and 1.68x at securitization.

Details concerning the classes with rating changes are as follows:

To access rating and relevant documents, click here.

Click here to view the report.

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