Fitch Affirms JPMCC 2013-C10

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 13 classes of J.P. Morgan Chase Commercial Mortgage Securities Trust (JPMCC) commercial mortgage pass-through certificates series 2013-C10. 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 performed as expected; there are no delinquent or specially serviced loans.

As of the January 2016 distribution date, the pool's aggregate principal balance has been reduced by 2.8% to $1.24 billion from $1.28 billion at issuance. No loans are defeased. Per servicer reporting, there are three loans (2.8%), on the watchlist, each of which have seen declines in performance due to declining occupancy or rental rates. None of the loans on the watchlist are in the transaction's top 20 loans.

The largest loan in the pool (10.5% of the current balance) is secured by The Shops at Riverside, a 771,233 square foot (sf) regional mall located in Hackensack, NJ. Collateral for the loan totals 473,459 sf, which includes 366,549 sf of in-line space. At origination, the mall was anchored by Saks Fifth Avenue (collateral) and Bloomingdales (non-collateral). Saks Fifth Avenue vacated the property upon its lease expiration in January 2015. The master servicer has indicated the borrower plans to redevelop this space, a portion of which will be occupied by a movie theatre. As of September 2015, occupancy at the property was 80%. The servicer reported a drop in the net operating income (NOI) debt service coverage ratio (DSCR) to 3.21x as of year-end (YE) 2014 from 3.25x as of YE 2013. Fitch will continue to monitor the redevelopment and lease up of the former Saks Fifth Avenue space.

The second largest loan (9%) is secured by the Gateway Center, a four building office complex totalling 1.5 million square feet in Pittsburgh, PA. Per the September 2015 rent roll, occupancy was 90%, which is an increase from 85% as of December 2014. The servicer reported an increase in the NOI DSCR to 2.34x as of YE 2014 from 2.25x as of YE 2013.

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 materially changes the transaction's portfolio-level metrics.

DUE DILIGENCE USAGE

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

Fitch affirms the following classes as indicated:

--$27.4 million class A-1 at 'AAAsf'; Outlook Stable;

--$87.2 million class A-2 at 'AAAsf'; Outlook Stable;

--$22.4 million class A-3 at 'AAAsf'; Outlook Stable;

--$185 million class A-4 at 'AAAsf'; Outlook Stable;

--$430.1 million class A-5 at 'AAAsf'; Outlook Stable;

--$106.7 million class A-SB at 'AAAsf'; Outlook Stable;

--$107.1 million class A-S at 'AAAsf'; Outlook Stable;

--$965.8 million* class X-A at 'AAAsf'; Outlook Stable;

--$84.7 million class B at 'AA-sf'; Outlook Stable;

--$55.9 million class C at 'A-sf'; Outlook Stable;

--$47.9 million class D at 'BBB-sf'; Outlook Stable;

--$30.4 million class E at 'BBsf'; Outlook Stable;

--$12.8 million class F at 'Bsf'; Outlook Stable.

*Notional amount and interest-only.

Fitch does not rate class X-B and the class NR 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

JPMCC 2013-C10 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708562

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=998994

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=998994

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/20160203006587/en/

Fitch Ratings
Primary Analyst
Zachary Johnson
Associate Director
+1-646-582-4815
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

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