Fitch Affirms COMM 2013-CCRE9

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings affirms 14 classes of Deutsche Bank Securities, Inc.'s COMM 2013-CCRE9 commercial mortgage pass-through certificates. A full list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are based on relatively stable performance of the underlying collateral pool since issuance. There have been no delinquent loans since issuance. Fitch has designated three loans (0.9%) as Fitch Loans of Concern, and no loans are currently with the special servicer. The transaction's only specially serviced loan since issuance was returned to the master servicer in January 2015 after a modification.

As of the June 2015 distribution date, the pool's aggregate principal balance has been reduced by 1.9% to $1.27 billion from $1.29 billion at issuance. No loans are defeased.

The largest loan in the pool (6.2%), The Northridge Mall, is secured by a one million square foot (sf; (587,484 sf collateral) enclosed regional mall located in Salinas, CA. The property was built in 1972 and renovated most recently in 2006. The mall contains four anchor tenants including Macy's and Sears (non-collateral) and JCPenney and Forever 21 (owned collateral). Additional large tenants at the property that are not part of the collateral include Century Theaters, Toys R' Us, and Big 5 Sporting Goods. In December 2014, H&M began a 10-year lease for 21,500 sf. The mall faces limited direct competition, with the nearest enclosed regional mall located over 60 miles away in San Jose, CA. Debt service coverage ratio (DSCR) was reported at 2.20x at YE 2014 and overall mall occupancy was 96.6% as of March 2015.

The second largest loan in the pool (5.9%), The Paramount Building, is secured by a 31 story 694,134 sf office and retail property located in the Times Square district of New York, NY. There is an additional $55 million pari-passu note in COMM 2013-CCRE8. The largest retail tenant is the Hard Rock Cafe (44,970 sf; 6.3% of net rentable area [NRA]) located on the ground floor and the largest office tenant is HQ Global Workplaces (39,854 sf; 5.7% of NRA). The servicer reported DSCR of 3.54x at YE 2014 compared to 4.15x at YE 2013. Occupancy was reported at 68% as of YE 2014 compared to 69% as of YE 2013.

The third largest loan in the pool (5.2%), The Valley Hills Mall, is a secured 936,682-sf regional mall (325,166 sf collateral) located in Hickory, NC approximately 60 miles northwest of the Charlotte CBD. The property is anchored by Belk, Sears, JCPenney, and Dillard's, none of which are part of the collateral. The subject is the only enclosed regional mall within a 35-mile radius and is the primary shopping destination in the Hickory-Lenoir-Morganton metropolitan statistical area. The servicer reported DSCR was 1.54x as of YE 2014 compared to 1.57x at YE 2013. The overall mall occupancy is 94% as of March 2015.

RATING SENSITIVITIES

All classes maintain Stable Outlooks. 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-CCRE9' (July 16, 2014), available at www.fitchratings.com.

Fitch has affirmed the following ratings:

--$55.3 million class A-1 at 'AAAsf', Outlook Stable;

--$78 million class A-2 at 'AAAsf', Outlook Stable;

--$112.2 million class A-SB at 'AAAsf', Outlook Stable;

--$100 million class A-3 at 'AAAsf', Outlook Stable;

--$100 million class A-3FL at 'AAAsf', Outlook Stable;

--$0 class A-3FX at 'AAAsf', Outlook Stable;

--$436 million class A-4 at 'AAAsf', Outlook Stable;

--$127.8 million class A-M at 'AAAsf', Outlook Stable;

--$80.9 million class B at 'AA-sf', Outlook Stable;

--$45.3 million class C at 'A-sf', Outlook Stable;

--$50.1 million class D at 'BBB-sf', Outlook Stable;

--$27.5 million class E at 'BBsf', Outlook Stable;

--$12.9 million class F at 'Bsf', Outlook Stable;

--$1 billion class X-A at 'AAAsf', Outlook Stable.

Fitch does not rate the class G or X-B certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 31 Mar 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=986915

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=986915

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/20150624006418/en/

Fitch Ratings
Primary Analyst
Darren Liss
Director
+1-212-908-0753
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, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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