Fitch Ratings has downgraded six classes and affirmed seven classes of
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
The Outlook revision for classes A-S and X-A to Stable from Negative reflects the recent reports that the
The largest increase and contributor to expected losses is the
The servicer reports that a foreclosure sale is expected and a liquidations strategy is being evaluated. For TTM
The second largest increase in expected losses is from
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
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
Alternative Loss Considerations: Due to upcoming maturities (100% of the pool matures by
Fitch considered an additional scenario in which
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
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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