Press Release

Morningstar DBRS Confirms All Credit Ratings of COMM 2014-UBS6 Mortgage Trust

CMBS
January 30, 2025

DBRS, Inc. (Morningstar DBRS) confirmed its credit ratings on all classes of Commercial Mortgage Pass-Through Certificates, Series 2014-UBS6 issued by COMM 2014-UBS6 Mortgage Trust as follows:

-- Class X-B at A (sf)
-- Class C at A (low) (sf)
-- Class PEZ at A (low) (sf)
-- Class X-C at BBB (sf)
-- Class D at BBB (low) (sf)
-- Class E at B (high) (sf)
-- Class F at CCC (sf)
-- Class G at C (sf)

Morningstar DBRS maintained Negative trends on Classes C, D, E, X-B, X-C, and PEZ. There are no trends on Classes F and G, which have credit ratings that do not typically carry trends in commercial mortgage-backed securities (CMBS) credit ratings.

The credit ratings reflect Morningstar DBRS' outlook for the remaining loans in the pool based on a recovery analysis as the transaction is now in wind-down. Since the last credit rating action, 60 loans have repaid from the trust including 28 loans that were previously defeased. Interest shortfalls increased to $5.5 million as of January 2025, compared with the $4.3 million reported at the last review in February 2024. To date, there have been realized losses of approximately $28.8 million, contained in the nonrated Class H certificate.

As of the January 2025 remittance, 10 loans remain in the pool, representing a collateral reduction of 87.0% since issuance. The remaining loans in the pool represent adverse selection with nine of the 10 loans specially serviced because they did not repay at their respective maturity dates. The only loan that is not in special servicing, representing 11.4% of the pool, is secured by a portfolio of 18 self-storage properties across nine states. Morningstar DBRS expects the fully amortizing, fixed-rate loan to continue to perform through its maturity date in 2034; however, the extended maturity profile poses some concern relative to the disposition timing of the specially serviced loans. A recovery of the Class C certificate is reliant on the full repayment of the performing loan as well as the proceeds from the liquidations from the specially serviced loans, the majority of which are recent transfers with an uncertain resolution timeframe. The Negative trends have been maintained and are warranted given the pool concentration, adverse selection, increasing interest shortfalls, and potential for cash flow volatility and further value declines for the remaining loans in the pool.

Morningstar DBRS' loss expectations are primarily driven by the three largest loans in the pool, representing more than half of the outstanding trust balance. These loans, 811 Wilshire (Prospectus ID#6, 21.3% of the pool), Highland Oaks Portfolio (Prospectus ID#8; 19.1% of the pool), and 8000 Maryland Avenue (Prospectus ID#9; 16.5% of the pool), are secured by office properties that have demonstrated cash flow and property declines since issuance.

The largest loan, 811 Wilshire, which is backed by a 20-story, 336,190-square-foot (sf) office property in the Los Angeles central business district, transferred to special servicing in November 2024 soon after the loan did not repay at its maturity date earlier in the month. Occupancy at the property declined to 47% as of June 2024 and has exposure to tenant rollover risk in its three largest tenants, representing 21.3% of net rentable area (NRA), with leases expiring in 2025, 2026, and 2027. Despite the low occupancy rate, which has hovered around 50% for the last few reporting periods, Morningstar DBRS notes the relatively healthy debt service coverage ratio (DSCR) of 1.32 times (x) as of June 2024 and 1.62x as of YE2023; however, given the soft submarket vacancy of about 20% according to Q4 2024 data published by CBRE and the upcoming tenant rollover, this figure is likely to decline. Morningstar DBRS analyzed the loan with a liquidation scenario based on a 50% haircut to the issuance appraisal value, which implied a loss severity in excess of 15.0%.

The Highland Oaks Portfolio loan is secured by 319,491 sf across two Class B office properties in Downers Grove, Illinois, a suburb of Chicago. The loan transferred to special servicing in February 2023 because of imminent monetary default. Morningstar DBRS has not received a full year's financials since 2016; however, the servicer commentary suggests the portfolio occupancy is about 31%. Given the property quality and suburban location in a soft submarket with excess supply, Morningstar DBRS expects the property will face significant challenges back-filling the vacant space and a high likelihood for further deterioration in value. An April 2024 appraisal valued the properties at $7.8 million, a substantial decline from the issuance appraised value of $48.1 million. Morningstar DBRS analyzed this loan with a 15% haircut to the April 2024 appraised value resulting in a loss severity of more than 85.0%.

The 8000 Maryland Avenue loan, which is secured by a 16-story, 196,921-sf office building in Clayton, Missouri, transferred to special servicing in February 2024 because of imminent monetary default, shortly after becoming delinquent, and did not repay at its maturity date in November 2024. The most recent servicer reported financials are as of September 30, 2023; those figures indicate the occupancy rate and DSCR were 92.5% and 1.45x, respectively, with four major tenants, representing 26.8% of NRA, having lease expirations between 2024 and 2026. Morningstar DBRS notes the increased credit risk associated with the concentrated tenant rollover, which could potentially result in an adverse effect for the historically healthy DSCR. A July 2024 appraisal valued the property at $22.2 million, a sharp decline from the issuance appraised value of $42.0 million. Morningstar DBRS analyzed this loan with a 10% haircut to the July 2024 appraised value resulting in a loss severity of more than 40.0%.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings at (August 13, 2024; https://dbrs.morningstar.com/research/437781).

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

All credit ratings are subject to surveillance, which could result in credit ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by Morningstar DBRS.

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

The principal methodology is North American CMBS Surveillance Methodology (December 13, 2024; https://dbrs.morningstar.com/research/444617).

Other methodologies referenced in this transaction are listed at the end of this press release.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

Morningstar DBRS notes that a traditional model-based sensitivity was not performed, however, Morningstar DBRS notes that the credit ratings are sensitive to the recoverability assumptions on the 10 remaining loans that are detailed in the accompanying press release. Should recoverability of the remaining loans be lower than that implied by the stressed values in the latest analysis, credit ratings lower in the capital stack would be those most negatively impacted.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS' outlooks and credit ratings are monitored.

DBRS, Inc.
22 West Washington Street
Chicago, IL 60602 USA
Tel. +1 312 332-3429

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

-- North American CMBS Multi-Borrower Rating Methodology (December 13, 2024; https://dbrs.morningstar.com/research/444616)
-- Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024; https://dbrs.morningstar.com/research/439702)
-- Legal Criteria for U.S. Structured Finance (December 3, 2024;
https://dbrs.morningstar.com/research/444064)
-- North American Commercial Mortgage Servicer Rankings (August 23, 2024; https://dbrs.morningstar.com/research/438283)

For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

Ratings

COMM 2014-UBS6 Mortgage Trust
  • Date Issued:Jan 30, 2025
  • Rating Action:Confirmed
  • Ratings:A (sf)
  • Trend:Neg
  • Rating Recovery:
  • Issued:US
  • Date Issued:Jan 30, 2025
  • Rating Action:Confirmed
  • Ratings:A (low) (sf)
  • Trend:Neg
  • Rating Recovery:
  • Issued:US
  • Date Issued:Jan 30, 2025
  • Rating Action:Confirmed
  • Ratings:A (low) (sf)
  • Trend:Neg
  • Rating Recovery:
  • Issued:US
  • Date Issued:Jan 30, 2025
  • Rating Action:Confirmed
  • Ratings:BBB (sf)
  • Trend:Neg
  • Rating Recovery:
  • Issued:US
  • Date Issued:Jan 30, 2025
  • Rating Action:Confirmed
  • Ratings:BBB (low) (sf)
  • Trend:Neg
  • Rating Recovery:
  • Issued:US
  • Date Issued:Jan 30, 2025
  • Rating Action:Confirmed
  • Ratings:B (high) (sf)
  • Trend:Neg
  • Rating Recovery:
  • Issued:US
  • Date Issued:Jan 30, 2025
  • Rating Action:Confirmed
  • Ratings:CCC (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Jan 30, 2025
  • Rating Action:Confirmed
  • Ratings:C (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • US = Lead Analyst based in USA
  • CA = Lead Analyst based in Canada
  • EU = Lead Analyst based in EU
  • UK = Lead Analyst based in UK
  • E = EU endorsed
  • U = UK endorsed
  • Unsolicited Participating With Access
  • Unsolicited Participating Without Access
  • Unsolicited Non-participating

ALL MORNINGSTAR DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING MORNINGSTAR DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.