DBRS Confirms All Classes of COMM 2014-UBS2 Mortgage Trust

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

All trends are Stable.

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 3.8% as a result of scheduled amortization, with all of the original loans remaining in the pool. Two loans have been defeased, representing 1.3% of the current pool balance. Based on YE2016 financials, the pool reported a weighted-average (WA) debt service coverage ratio (DSCR) of 1.60 times (x) and a WA debt yield of 10.6%. Comparatively, the YE2015 WA DSCR and WA debt yield were 1.60x and 9.3%, respectively, and the WA DBRS Term DSCR and WA DBRS Debt Yield at issuance were 1.37x and 8.7%, respectively.

As of the November 2017 remittance, there is one loan in special servicing, representing 2.0% of the current pool balance. In addition, there are nine loans on the servicer’s watchlist, representing 27.8% 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 and the property is now REO. For additional information on the current status of the workout and the DBRS analysis approach, please see the Loan Commentary on the DBRS Viewpoint platform.

Classes X-A and X-B are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated reference tranche and may be adjusted upward by one notch if senior in the waterfall.

All ratings will be subject to ongoing surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans and specially serviced loans in the transaction in the DBRS Viewpoint platform. Registration is free. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please register or log into DBRS Viewpoint at viewpoint.dbrs.com.

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

The principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. Please note that not every related methodology listed under a principal Structured Finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

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 under Related Documents or by contacting us at info@dbrs.com.

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

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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