DBRS Correction: COMM 2014-UBS2 Mortgage Trust

DBRS Limited (DBRS) corrected a December 15, 2016, press release which incorrectly identified Class PEZ as Class PEX in the material deviation disclosure. The press release has been amended with the correct class name and is available on the DBRS website.

On December 15, 2016, DBRS Limited (DBRS) confirmed all classes of Commercial Mortgage Pass-Through Certificates, Series 2014-UBS2 issued by COMM 2014-UBS2 Mortgage Trust as follows:

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

All trends are Stable. DBRS does not rate the first loss piece, Class G.

The rating confirmations reflect the overall stable performance of the transaction. At issuance, the pool consisted of 59 loans secured by 95 commercial and multifamily properties. The pool has since experienced a collateral reduction of 3.7% as a result of scheduled amortization, with all of the original 59 loans outstanding. The pool also benefits from defeasance collateral as one loan, representing 0.9% of the current pool balance, is fully defeased. Based on YE2015 financials, the pool reported a weighted-average (WA) debt service coverage ratio (DSCR) of 1.60 times (x) and a WA debt yield of 10.3%. Comparatively, the YE2014 WA DSCR and WA debt yield were 1.50x and 9.4%, respectively.

As of the November 2016 remittance, there is one loan in special servicing, representing 2.0% of the current pool balance, and seven loans on the servicer’s watchlist, representing 4.8% of the current pool balance. The specially serviced loan is Prospectus ID #15, Creekside Mixed Use Development. That loan transferred to the special servicer in November 2014 for imminent default. A receiver was appointed in March 2015 and after attempts to sell the property were unsuccessful, the special servicer reported a foreclosure hearing was scheduled for late 2016. Based on the most recent financials, the loans on the watchlist reported a WA DSCR and debt yield of 1.46x and 9.2%, respectively.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted and for the specially serviced loan, as well as for the largest 15 loans in the pool, in the DBRS CMBS IReports platform. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please log into DBRS CMBS IReports at www.ireports.dbrs.com.

The ratings assigned to Classes C, PEZ and F materially deviate from the higher ratings implied by the quantitative model. DBRS considers a material deviation to be a rating differential of three or more notches between the assigned rating and the rating implied by the quantitative model that is a substantial component of a rating methodology; in this case, the assigned ratings reflect the sustainability of loan performance trends not demonstrated.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

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

The applicable methodologies are North American CMBS Rating Methodology (March 2016) and CMBS North American Surveillance (October 2016), which can be found on our website under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.