Fitch Affirms COMM 2013-CCRE13

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 14 classes of Deutsche Bank Securities, Inc.'s COMM 2013-CCRE13 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are based on the stable performance of the underlying collateral pool. The pool has experienced no realized losses to date. Fitch has designated three loans (3.1%) as Fitch Loans of Concern, which does not include any specially serviced loans.

As of the November 2015 distribution date, the pool's aggregate principal balance has been reduced by 1.6% to $1.11 billion from $1.13 billion at issuance. No loans are defeased.

The largest Fitch Loan of Concern (2.2%) is secured by a mixed-use property located in downtown Philadelphia, PA. The property consists of approximately 40,000 square feet (sf) of ground floor retail space, 8,000 sf of second-floor office space, 14 residential units, and a 318-space parking garage. At closing, a high-end specialty grocer had signed a lease for approximately 20,000 sf of retail space with an expected move in date of September 2014. The tenant never took possession of the space and has now requested to be released from their lease. The borrower has reportedly submitted a request to the Lender for approval to a new lease with a different small grocer for 16,215 sf of first floor space which is currently being reviewed by the servicer. In total, over 50% of the retail space remains vacant. A debt service guarantee from the sponsor is currently in place.

Two additional smaller loans are also considered Fitch Loans of Concern. The loans (combined 0.9%), which are both secured by multifamily properties located in North Dakota, have been negatively impacted by the distressed local oil industry. In its analysis, Fitch applied stressed capitalization rates above the typical range for multifamily properties to account for the troubling market conditions.

The largest loan in the pool (11.5%) is a pari passu A-note secured by a 1.1 million sf 24-story telecommunications building located in the TriBeCa neighborhood of New York City. The property, which was built in 1930 and renovated in 2013, is leased to a variety of national telecommunications firms. As of the June 2015 rent roll, the property was 78.9% occupied compared with 77.3%, as of August 2014, and 74.8% at issuance. The servicer reported year-end 2014 net operating income (NOI) debt service coverage ratio (DSCR) was 4.87x.

The second largest loan in the pool (9.2%) is a pari passu A-note secured by a 460,000 sf portion of a 1.2 million regional mall located in St. Louis, MO. The mall was originally built in 1986 and renovated in 2011. Non-collateral anchor tenants include Dillard's, Macy's and Nordstrom. As of the September 2015 rent roll, total mall occupancy was approximately 95% occupied while the collateral was 87% occupied with an additional 7% leased but not yet occupied. Trailing 12 months (TTM) September 2015 comparative in line sales were reported at $566 per square foot (psf). The servicer reported year-end 2014 DSCR was 3.24x.

RATING SENSITIVITIES

The Rating Outlook for all classes remains 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 portfolio-level metrics.

Additional information on rating sensitivity is available in the report 'COMM 2013-CCRE13' (Dec. 10, 2013), available at 'www.fitchratings.com.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following classes:

--$33.3 million class A-1 at 'AAAsf'; Outlook Stable;

--$187.2 million class A-2 at 'AAAsf'; Outlook Stable;

--$72.7 million class A-SB at 'AAAsf'; Outlook Stable;

--$175 million class A-3 at 'AAAsf'; Outlook Stable;

--$287.1 million class A-4 at 'AAAsf'; Outlook Stable;

--$105 million class A-M at 'AAAsf'; Outlook Stable;

--$47 million class B at 'AA-sf'; Outlook Stable;

--$52.5 million class C at 'A-sf'; Outlook Stable;

--$0 class PEZ* at 'A-sf'; Outlook Stable;

--$55.3 million class D at 'BBB-sf'; Outlook Stable;

--$22.1 million class E at 'BBsf'; Outlook Stable;

--$9.7 million class F at 'Bsf'; Outlook Stable;

--$860.4 million class X-A** at 'AAAsf', Outlook Stable;

--$154.8 million class X-B** at 'BBB-sf', Outlook Stable.

* The class A-M, class B and class C certificates may be exchanged for class PEZ certificates, and class PEZ certificates may be exchanged for the class A-M, class B and class C certificates.

** Notional amount and interest only.

Fitch does not rate the class X-C, G and SLG certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Related Research

COMM 2013-CCRE13 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864459

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=996510

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=996510

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151210006498/en/

Fitch Ratings
Primary Analyst
Stacey McGovern
Director
+1-212-908-0722
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• CSG positioned as a Leader in the SPARK Matrix™: Customer Communications Management, 2026 by QKS Group
• MNP Consumer Debt Index: Canadians Caught in the ‘Pre-Spent Paycheque’ Cycle as Financial Pressures Drive ‘Lifestyle Shrinkflation’
• Guthrie AI Raises $4 Million Seed Round Led by Chicago Ventures to Put a Virtual Bid Assistant on Every Glazing Team