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KBRA Downgrades All Outstanding Ratings for UBS-BB 2013-C5

30 Jan 2026   |   New York

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KBRA downgrades all outstanding ratings for UBS-BB 2013-C5, a $254.0 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction and are based on the performance and expected recovery of the transaction's two remaining assets, which have both been identified as K-LOCs. Both loans are well past their originally scheduled maturity dates and have been modified. Additionally, the two loans have estimated losses, which are higher than KBRA’s last ratings change in January 2024. The details of the remaining assets are outlined below.

Valencia Town Center (largest, 73.4%)

  • The loan is collateralized by a 657,837 sf portion of Valencia Town Center, a super-regional mall located in Valencia, California, approximately two miles north of the Santa Clarita CBD and 30 miles northwest of Los Angeles. Non-collateral anchors include Macy's, JCPenney, and a vacant former Sears box, Collateral anchors include Edward's Theaters (10.0% of base rent), Gold's Gym (5.3%), and H&M (4.5%).
  • KBRA maintains the loan’s K-LOC designation and KPO of Underperform based on its prior status with the special servicer, subsequent loan modification, and deteriorating collateral performance. The interest-only loan transferred to the special servicer in September 2022 and failed to pay off at its January 2023 maturity date. According to the servicer, an assumption of the debt closed in September 2023 with published reports indicating that the property was sold for $199.0 million ($313 per sf) to Centennial, a Dallas-based owner and operator of retail and mixed-use real estate. The loan's maturity date was extended to September 2027 and a partial prepayment of $8.1 million was applied to the loan during the October 2023 remittance period. The loan was returned to the master servicer in December 2023 and was current as of the January 2026 remittance.
  • The servicer-reported occupancies and DSCs are: 72.0% / 1.13x (YTD September 2025), 76.0% / 1.24x (FY 2024); at closing, these were 97.0% / 3.03x. A March 2023 appraisal valued the collateral property at $181.1 million ($285 per sf), a 54.5% decline from $398.0 million ($626 per sf) at issuance. As of January 2026, the loan is current on payments and not specially serviced. However, in the event of another default, KBRA estimates that the loan could experience a loss given default of $37.4 million (20.0% estimated loss severity) on the $186.6 million loan balance. The estimated loss is based on a liquidation value of $149.2 million ($227 per sf).

Harborplace A/B (2nd largest, 26.6%)

  • The loan is collateralized by the leasehold interest in a 148,928 sf lifestyle center located in the Baltimore, Maryland Inner Harbor neighborhood. The property is subject to a 108-year ground lease with the Mayor and City Council of Baltimore as the ground lessor.
  • KBRA maintains the loan's K-LOC designation and KPO of Underperform based on its previous status with special servicer. The loan transferred to the special servicer in February 2019 as a result of the former borrower having indicated that they would no longer continue to fund cash shortfalls and that vendors had not been paid. The special servicer filed an emergency request for a receiver after the former sponsor failed to make the March 2019 debt service payment and failed to pay a $1.2 million judgment to one of the Harborplace tenants, Bubba Gump Shrimp, for not properly maintaining the common areas of the property. The receiver took possession of the property in May 2019. MCB Real Estate purchased the subject property in June 2023 and assumed the loan with plans for a redevelopment plan along the city’s waterfront which required a change to the Charter of Baltimore City that was authorized by voters in November 2024. The loan returned to the master servicer in October 2023 and was subsequently paid current. As part of the loan assumption, the loan was bifurcated into an A/B note split ($56.5 million A-Note, $10.9 million B-Note), and the loan's maturity date was extended to July 2026. Additionally, the loan's payment terms have been amended from amortizing to interest-only.
  • The servicer-reported occupancies and DSCs are: 65.0% / -0.10x (FY 2024), 59.0% / -0.43x (FY 2023); these were 95.0% and 1.71x at issuance. A June 2023 appraisal valued the collateral property at $46.5 million ($312 per sf), a 56.9% decline from $108.0 million ($725 per sf) at issuance. As of January 2026, the loan was reported as current on payments; however, according to the servicer, the loan was also reported as non-recoverable and has cumulative deferred interest of $11.9 million. KBRA’s analysis resulted in an estimated loss of $62.8 million (93.2% estimated loss severity) on the $67.5 million whole loan balance. The estimated loss is based on a liquidation value of $16.7 million ($112 per sf).

Details concerning the classes with ratings changes are as follows:

  • Class B to A (sf) from AA (sf)
  • Class EC to BBB (sf) from A (sf)
  • Class C to BBB (sf) from A (sf)
  • Class D to CCC (sf) from B (sf)
  • Class E to CC (sf) from CCC (sf)
  • Class F to C (sf) from CC (sf)

Rating Sensitivities

Future rating actions will be dependent upon the ongoing assessment of the timing and likelihood of ultimate payment of principal and accrued interest on the rated certificates. The assessment will consider the expected and actual losses on the remaining assets in the transaction, as well as, the magnitude and extent of interest shortfalls, if any, on the certificates.

To access ratings and relevant documents, click here.

Related Publication

Methodologies

Disclosures

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 www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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