Fitch Affirms UBS-BB 2013-C6
KEY RATING DRIVERS
The affirmations are based on stable performance of the underlying collateral pool. There have been no delinquent or specially serviced loans since issuance. The pool has experienced no realized losses to date and Fitch has not designated any loans as Fitch Loans of Concern.
As of the February 2016 distribution date, the pool's aggregate principal balance has been reduced by 2.6% to \\$1.26 billion from \\$1.3 billion at issuance. Per the servicer reporting, one loan (0.1% of the pool) is defeased. Interest shortfalls are currently affecting class G.
The largest loan in the pool (10%) is the 575 Broadway loan; a 169,450 square-foot (sf) mixed-use property located at 575 Broadway in Manhattan, New York, NY. Originally purchased by the sponsor in 1989 for \\$9.6 million, the property is now occupied by a mix of retail and office tenants including Prada (retail), Estee Lauder, Inc. (office), Code and Theory (office) and Coldwater Creek (office). According to the January 2016 rent roll, the property is 100% occupied. The debt service coverage ratio (DSCR) for the interest-only loan was reported to be 3.64x as of year-end (YE) 2014. At issuance, the occupancy and DSCR was 93% and 3.54x, respectively.
The second largest loan (6.1%) is the Shoppes at River Crossing loan, which is secured by a 727,963 sf shopping center, of which 527,963 sf is collateral. The property, located in Macon, GA, which is roughly 75 miles south of Atlanta, is a lifestyle center with a power center component. Built in 2008, the subject is anchored by Belk's (ground lease) and Dillard's (not part of collateral). Other tenants include Dick's, Barnes & Noble and Joann Fabrics. As of YE 2014, occupancy was reported to be 95% and a 2.62x DSCR.
The third largest loan (6%) is the 2000 Market Street loan, which is secured by a 29-story, 665,649 sf office building located in the central business district of Philadelphia, PA. The property has a mix of 65 office tenants with the largest tenants including law firms Marshall, Dennehey, Warner, Coleman & Goggin, and Fox Rothschild, LLP as well as the Board of Pensions of the Presbyterian Church (U.S.A.), who are all on long-term leases and combine to occupy 49% of the net rentable area. Occupancy was reported to be 96% as of September 2015 and the DSCR was 2.18x, both in-line with issuance.
RATING SENSITIVITIES
Rating Outlooks remain Stable. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's overall portfolio-level metrics.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch affirms the following classes:
--\\$32 million class A-1 at 'AAAsf'; Outlook Stable;
--\\$43 million class A-2 at 'AAAsf'; Outlook Stable;
--\\$155 million class A-3 at 'AAAsf'; Outlook Stable;
--\\$461.1 million class A-4 at 'AAAsf'; Outlook Stable;
--\\$87 million class A-SB at 'AAAsf'; Outlook Stable;
--\\$95 million class A-3FL at 'AAAsf'; Outlook Stable;
--\\$0 class A-3FX at 'AAAsf'; Outlook Stable;
--\\$111.7 million class A-S at 'AAAsf'; Outlook Stable;
--\\$984.9 million* class X-A 'AAAsf'; Outlook Stable;
--\\$140.9 million* class X-B 'A-sf'; Outlook Stable.
--\\$90.7 million class B at 'AA-sf'; Outlook Stable;
--\\$50.2 million class C at 'A-sf'; Outlook Stable;
--\\$48.6 million class D at 'BBB-sf'; Outlook Stable;
--\\$25.9 million class E at 'BBsf'; Outlook Stable;
--\\$19.4 million class F at 'Bsf'; Outlook Stable.
*Notional amount and interest only.
Fitch does not rate the interest-only class X-C or class G certificates.
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