Fitch Affirms MSBAM 2013-C11

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed all classes of Morgan Stanley Bank of America Merrill Lynch Trust, commercial mortgage pass-through certificates, series 2013-C11 (MSBAM 2013-C11). A full list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are the result of stable performance of the underlying pool since issuance. As of the June 2015 distribution date, the pool's aggregate principal balance has been reduced by 1.8% to $841 million from $856.3 million at issuance. The pool has not had any delinquent or specially serviced loans since issuance. Fitch has designated three smaller loans (combined for 1.8% of pool) as Loans of Concern. Loans representing 93.5% of the pool reported full-year 2014 financial information.

The largest loan, Westfield Countryside (11.9% of pool), is secured by 464,836 square feet (sf) of a 1.26 million sf regional mall located in Clearwater, FL. The mall is anchored by Sears, Macy's, Dillard's, and JC Penney, all of which are not part of the collateral. The largest collateral tenants are Cobb Theatres, XXI Forever, LA Fitness, and Victoria's Secret. As of the March 2015 rent roll, overall mall occupancy was 97% and collateral occupancy was 90%. Net operating income (NOI) for 2014 has improved modestly by 4% from 2013. For the year-to-date period ending March 31, 2015, annualized sales for the in-line space was $319 per square foot (psf) and for the Cobb Theatre was approximately $594,000 per screen. Over the same period, Sears, Macy's, Dillard's, and JC Penney reported annualized sales of $194 psf, $221 psf, $135 psf, and $138 psf, respectively.

The next largest loan, The Mall at Tuttle Crossing (11.3 %), is secured by 385,057 sf of a 1.14 million sf regional mall located in Dublin, OH. The mall is anchored by two Macy's stores, JC Penney, and Sears, all of which are not part of the collateral. The largest collateral tenants are The Finish Line, Shoe Dept. Encore, Victoria's Secret, and H&M. As of the March 2015 rent roll, the overall mall occupancy was 94% and collateral occupancy was 83%. The largest collateral tenant, The Finish Line, recently extended its lease until February 2025. NOI has remained relatively flat between 2013 and 2014. In-line sales have also remained flat since issuance.

The fourth largest loan, Southdale Center, is secured by 634,880 sf of a 1.2 million sf regional mall located in Edina, MN. The mall is anchored by Macy's and JC Penney, which are not part of the collateral, and Herberger's, which makes up approximately 23% of the collateral square footage. As of the December 2014 rent roll, the overall mall occupancy was 88%. Collateral occupancy declined to 78% compared to 88% at issuance, primarily due to Marshall's vacating prior to its lease expiration to relocate to another nearby center.

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 'Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C11' (April 8, 2014), 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:

--$37.7 million class A-1 at 'AAAsf', Outlook Stable;

--$142 million class A-2 at 'AAAsf', Outlook Stable;

--$73 million class A-AB at 'AAAsf', Outlook Stable;

--$125 million class A-3 at 'AAAsf', Outlook Stable;

--$206.5 million class A-4 at 'AAAsf', Outlook Stable;

--Interest-only class X-A at 'AAAsf'; Outlook Stable;

--$49.2 million class A-S at 'AAAsf', Outlook Stable;

--$61 million class B at 'AA-sf', Outlook Stable;

--$34.3 million class C at 'A-sf', Outlook Stable;

--$144.5 million class PST at 'A-sf', Outlook Stable.

--$38.5 million class D at 'BBB-sf', Outlook Stable;

--$9.6 million class E at 'BBB-sf', Outlook Stable;

--$8.6 million class F at 'BB+sf', Outlook Stable;

--$20.3 million class G at 'Bsf', Outlook Stable.

Fitch does not rate the class H, J, or X-B certificates. The class A-S, B, and C certificates may be exchanged for class PST certificates, and the class PST certificate may be exchanged for the class A-S, B, and C 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. 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

Related Research

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C11 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=739677

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=987676

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=987676

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/20150709006118/en/

Fitch Ratings
Primary Analyst
Melissa Che
Director
+1-212-612-7862
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Robert Brook Sutherland
Senior Director
+1-312-606-2346
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: [email protected]

Source: Fitch Ratings

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