DBRS Assigns Provisional Ratings to UBS-BB 2012-C4

DBRS has today assigned provisional ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2012-C4 (the Certificates), to be issued by UBS-Barclays Commercial Mortgage Trust. The trends are Stable.

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class A-AB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (sf)

Classes A-S, X-A, X-B, B, C, D, E and F have been privately placed pursuant to Rule 144a.

The Class X-A and Class X-B balances are notional. DBRS ratings on interest-only certificates address the likelihood of receiving interest based on the notional amount outstanding. DBRS considers the interest-only certificate’s position within the transaction payment waterfall when determining the appropriate rating.

The collateral consists of 91 fixed-rate loans secured by 131 multifamily properties, mobile home parks and commercial properties. The transaction has a balance of $1,456,096,494. The pool consists of relatively low-leverage financing, with a DBRS weighted-average term debt service coverage ratio (DSCR) and debt yield of 1.78 times (x) and 10.0%, respectively. The pool is relatively diverse in terms of locations, loan size and property, with a concentration level equivalent to a pool of 19 equal-sized loans.

Loans secured by hotel properties represent 23.2% of the pool, including four of the largest 15 loans. However, the largest hotel loan accounts for 41.5% of the total hospitality concentration and is net leased to an investment-grade rated hotel operator that guarantees all obligations associated with the lease. Additionally, these loans feature stronger credit characteristics than the overall pool, with a WA DBRS Exit Debt Yield of 14.2% and a WA DBRS Refi DSCR of 1.39x. The DBRS sample included 39 loans, representing 71.7% of the pool. A relatively high percentage of properties from the DBRS sample were classified as Above Average (27.3% of the sample, 19.6% of the pool), above the respective figures for other recently rated DBRS conduit transactions. In addition, the pool’s combined tertiary and rural concentration of 11.4% is relatively low compared with other transactions issued since 2010, which on average have had a combined tertiary/rural concentration of approximately 20%. DBRS considered the credit characteristics of one pari passu loan, 1000 Harbor Boulevard, representing 0.5% of the pool, to be consistent with investment-grade risk.

The ratings assigned to the Certificates by DBRS are based exclusively on the credit provided by the transaction structure and underlying trust assets. All classes will be subject to ongoing surveillance, which could result in upgrades or downgrades by DBRS after the date of issuance.

Notes:
All figures are in U.S. dollars unless otherwise noted.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodology is CMBS Rating Methodology, which can be found on our website under Methodologies.