Fitch Ratings has downgraded six classes and affirmed seven classes of Barclays Commercial Mortgage Securities LLC's UBS-Barclays Commercial Mortgage Trust 2013-C6, commercial mortgage pass-through certificates.

In addition, the Rating Outlooks for two classes have been revised to Stable from Negative.

RATING ACTIONS

Entity / Debt

Rating

Prior

UBS-BB 2013-C6

A-3 90349GBE4

LT

AAAsf

Affirmed

AAAsf

A-3FL 90349GAC9

LT

AAAsf

Affirmed

AAAsf

A-3FX 90349GAA3

LT

AAAsf

Affirmed

AAAsf

A-4 90349GBF1

LT

AAAsf

Affirmed

AAAsf

A-S 90349GBH7

LT

AAAsf

Affirmed

AAAsf

A-SB 90349GBG9

LT

AAAsf

Affirmed

AAAsf

B 90349GAN5

LT

BBBsf

Downgrade

Asf

C 90349GAQ8

LT

BBsf

Downgrade

BBBsf

D 90349GAS4

LT

CCCsf

Downgrade

BBsf

Page

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VIEW ADDITIONAL RATING DETAILS

KEY RATING DRIVERS

Increased Loss Expectations / Specially Serviced Loans: The downgrades reflect increased loss expectations, primarily from Broward Mall (8.5%) and an increase in specially serviced loans. There are eight (20.4%) Fitch Loans of Concern (FLOCs), including five (16.6%) in special servicing (up 12.9% from the prior rating action). Fitch's current ratings incorporate a base case loss of 11.3%.

The Outlook revision for classes A-S and X-A to Stable from Negative reflects the recent reports that the Santa Anita Mall (6.6%) has been sold and the loan expected to be paid in full. Class A-S is reliant on performing loans that are expected to be refinanced at their respective maturities.

The largest increase and contributor to expected losses is the Broward Mall, a 1,037,728-sf regional mall located in Plantation, FL. The loan transferred to the special servicer in June 2020 at the request of the borrower. The property is anchored by Macy's, JC Penny, Dillard's and a former Sears (closed in July 2018), none of which are part of the collateral. Seritage had plans to redevelop the former Sears site, but construction has been halted due to the pandemic and tenants withdrawing interest. The loan collateral includes 325,701 sf of inline space including tenants H&M, Victoria's Secret, Express, Footaction, Finish Line and Hollister. Additionally, there is a 55,823-sf 12-screen Regal Cinema that opened in January 2014.

The servicer reports that a foreclosure sale is expected and a liquidations strategy is being evaluated. For TTM June 2022, in-line sales were reported to be $388 psf compared to $434.27 psf at YE 2021, $284.12 at YE 2020, $384 psf at TTM June 2019 and $422 psf at issuance. Per the June 2022 rent roll, collateral occupancy was reported to be 94%, up from 89% at YE 2019 and in line with historical figures. Fitch expects significant losses given the regional mall asset type and limited investor pool. Fitch's base case loss of nearly 75% reflects a 26% cap rate on the servicer reported annualized March 2022 NOI.

The second largest increase in expected losses is from Bayview Plaza (4.8%), which is secured by the fee-simple (two retail buildings) and leased-fee interests (two buildings ground leased by a subsidiary and holding company of Louis Vuitton Moet Hennessey) in a 244,626 sf regional mall located in Tumon, Guam. The loan recently transferred to the servicer in August 2022 as a result of borrower's failure to cooperate with the implementation of cash management.

Occupancy has declined to 72% as of year-end (YE) 2021 from 95% at issuance. Fitch's loss expectation of approximately 30% reflects a 10% cap rate and a 40% stress to the YE 2019 NOI given the property's location in Guam, which has experienced steep declines in travel and tourism due to the pandemic.

Defeasance/Improved Credit Enhancement Since Issuance: Credit enhancement has improved since issuance from paydown and defeasance. Twenty-four loans (23%) are fully defeased, including five loans in the top 15 (12.5%). As of the August 2022 distribution date, the pool's aggregate balance has been reduced by 18.6% to $1.1 billion from $1.3 billion at issuance. Interest shortfalls are currently affecting non-rated class G. Ten loans (45% of the pool) are full-term interest-only, and the remaining 56 loans (55%) are amortizing.

Alternative Loss Considerations: Due to upcoming maturities (100% of the pool matures by April 2023), Fitch performed a sensitivity and liquidation analysis, which grouped the remaining loans based on their current status and collateral quality and ranked them by their perceived likelihood of repayment and/or loss expectation. This analysis contributed to the downgrades and continued Negative Outlooks on classes B, C and the interest only class X-B.

Fitch considered an additional scenario in which Broward Mall, Bayview Plaza and The Heights remain in the pool. The Heights is secured by a 13-story, 102,177-sf retail center located in the Brooklyn, NY. The property consists of a dark United Artists Theater (78% of NRA) and a Barnes & Noble (21.7%). The loan matures in March 2023 and the borrower has expressed a desire to extend the loan. Classes C through G are reliant on proceeds from these loans for repayment.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative rating action/downgrade:

Sensitivity factors that lead to downgrades include an increase in pool-level losses from underperforming or specially serviced loans/assets.

Downgrades to classes A-3 through A-SB and are not likely due to the continued expected amortization, position in the capital structure and repayment from loans expected to refinance at maturity, but may occur should interest shortfalls affect these classes.

A downgrade to class A-S is possible if performing loans fail to repay at their respective maturities and experience losses.

Downgrades to classes B, C and X-B would occur should overall pool losses increase significantly from continued underperformance of the FLOCs, loans susceptible to the pandemic not stabilize, additional loans default and/or transfer to special servicing, higher losses than expected are incurred on the specially serviced loans/assets.

Downgrades to distressed classes D through F would occur as losses are realized and/or become more certain.

Fitch has identified both a baseline and a worse-than-expected, adverse stagflation scenario based on fallout from the Russia-Ukraine war whereby growth is sharply lower amid higher inflation and interest rates; even if the adverse scenario should play out, Fitch expects virtually no impact on ratings performance, indicating very few rating or Outlook changes. However, for some transactions with concentrations in underperforming retail exposure, the ratings impact may be mild to modest, indicating some changes on sub-investment grade notes.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

Sensitivity factors that could lead to upgrades would include stable to improved asset performance coupled with additional paydown and/or defeasance.

Upgrades to classes B, C, and X-B may occur with significant improvement in CE and/or defeasance, and with the stabilization of performance on the FLOCs and/or the properties affected by the coronavirus pandemic; however, adverse selection and increased concentrations, or the underperformance of the FLOCs could cause this trend to reverse. Classes would not be upgraded above 'Asf' if there is a likelihood of interest shortfalls.

Upgrades to classes D through F are not currently expected given high loss expectations from the specially serviced loans/assets and refinance risk for other FLOCs that are nearing their respectively maturities.

Best/Worst Case Rating Scenario

International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

Additional information is available on www.fitchratings.com

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