Morningstar Credit Ratings Assigns Preliminary Ratings for COMM 2014-UBS3 Mortgage Trust, Commercial Mortgage Pass-Through Certificates (COMM 2014-UBS3)

NEW YORK, May 14, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings for the commercial mortgage-backed securities (CMBS) transaction COMM 2014-UBS3 Mortgage Trust, Commercial Mortgage Pass-Through Certificates (COMM 2014-UBS3). The preliminary ratings are based on information known to Morningstar as of May 14, 2014.

Preliminary Ratings (as of May 14, 2014)

Class

Balance/

Notional Amt.

Preliminary

Ratings

Morningstar DSCR

Morningstar BLTV

Morningstar ELTV

Credit Support
Levels








Class A-1

$36,275,000

AAA

1.95x

70.6%

61.4%

30.000%

Class A-2

$116,300,000

AAA

1.95x

70.6%

61.4%

30.000%

Class A-SB

$54,500,000

AAA

1.95x

70.6%

61.4%

30.000%

Class A-3

$240,000,000

AAA

1.95x

70.6%

61.4%

30.000%

Class A-4

$292,133,000

AAA

1.95x

70.6%

61.4%

30.000%

Class A-M

$35,641,000

AAA

1.95x

70.6%

61.4%

26.625%

Class X-A

$774,849,000

AAA

N/A

N/A

N/A

N/A

Class B

$88,441,000

AA

1.85x

74.4%

65.2%

18.250%

Class PEZ

$166,322,000

A-

1.74x

78.9%

69.7%

14.250%

Class C

$42,240,000

A-

1.74x

78.9%

69.7%

14.250%

Class X-B

$130,681,000

AAA

N/A

N/A

N/A

N/A

Class X-C

$26,400,000

AAA

N/A

N/A

N/A

N/A

Class X-D

$60,721,292

AAA

N/A

N/A

N/A

N/A

Class D

$63,361,000

BBB

1.66x

82.7%

73.4%

8.250%

Class E

$9,240,000

BBB-

1.65x

83.4%

74.2%

7.375%

Class F

$17,160,000

BB

1.62x

84.9%

75.7%

5.750%

Class G

$21,120,000

B

1.58x

86.7%

77.4%

3.750%

Class H

$39,601,292

NR

1.53x

89.9%

80.7%

0.000%

The key characteristics of the portfolio of commercial real estate and multifamily mortgage loans supporting COMM 2014-UBS3 are:

  • Forty-nine mortgage loans secured by 81 commercial real estate and multifamily properties;
  • An aggregate initial pool balance of approximately $1.06 billion;
  • Properties are distributed across 27 states, with 55.4 percent of the cut-off portfolio balance located in New York, California, Illinois, Michigan, and Ohio;
  • The largest loan exposure is Bronx Terminal Market in Bronx, New York, representing 9.9 percent of the cut-off portfolio balance;
  • The top 10 loans represent 61.7 percent of the cut-off portfolio balance; and
  • The largest exposures by property type are office with 35.1 percent and retail with 20.3 percent, as measured by the cut-off portfolio balance.

Based on information provided on the arranger's website, Morningstar's analysis of the loans yielded the following Morningstar metrics:

  • Weighted-average current and amortizing debt service coverage ratios (DSCRs) of 1.72x and 1.53x, respectively, based on the actual loan payment terms;
  • An aggregate pool value of approximately $1.17 billion, 24.1 percent lower than the reported aggregated appraised values; and
  • Beginning and ending portfolio loan-to-value (LTV) ratios of 89.9 percent and 80.7 percent, respectively.

For complete details about the preliminary ratings of this transaction, Morningstar's Presale Analysis Package, including the Presale Report, Asset Summary Reports, Loan Analysis Summary Table, and the Representations, Warranties, and Enforcement Mechanisms, is available under the "Ratings Reports" tab on https://ratingagency.morningstar.com. Information subsequently received could result in the assignment of final ratings that differ from the preliminary ratings.

About Morningstar Credit Ratings, LLC and Morningstar, Inc.
Morningstar Credit Ratings, LLC is a Nationally Recognized Statistical Rating Organization (NRSRO) that specializes in structured credit research and ratings, and offers a wide array of services including new-issue ratings and analysis, operational risk assessments, surveillance services, data, and technology solutions.

Morningstar Credit Ratings, LLC is a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research in North America, Europe, Australia, and Asia.

Morningstar, Inc. offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on approximately 456,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 12 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and had approximately $164 billion in assets under advisement and management as of March 31, 2014. The company has operations in 27 countries.

Morningstar, Inc. is not an NRSRO and its credit ratings on corporate and municipal issuers are not NRSRO credit ratings.

©2014 Morningstar, Inc. All Rights Reserved.

MORN-R

Media Contact:
Michelle Weiss, +1 267-960-6014 or michelle.weiss@morningstar.com

SOURCE Morningstar, Inc.



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