Fitch Affirms IMSCI Commercial Mortgage Pass-Through Certificates, Series 2013-3

NEW YORK--()--Fitch Ratings has affirmed Institutional Mortgage Capital, LP's (IMSCI) commercial mortgage pass-through certificates, series 2013-3. A detailed list of rating actions follows at the end of this release.

The certificates represent the beneficial ownership in the trust, primary assets of which are 38 loans secured by 43 Canadian commercial properties. The loans were contributed to the trust by Institutional Mortgage Capital, LP.

KEY RATING DRIVERS

The affirmations are based on the stable performance of the underlying collateral pool. As of the January 2014 remittance, the pool has had no delinquent or specially serviced loans. The pool's aggregate principal balance has been paid down by approximately 2.1% since issuance. Per the PSA, annual reporting of operating statements begins with the year ending Dec. 31, 2013.

RATINGS SENSITIVITY

All rated 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 'IMSCI 2013-3' (March 19, 2013), available at www.fitchratings.com.

The largest loan of the pool (10.2% of the pool balance) is secured by a 362,577 square foot (sf) enclosed shopping center located in Dollard-des-Ormeaux (Montreal), Quebec. The property is anchored by Canadian Tire and Super C grocery. The pari passu loan is full recourse to the borrowing entity and its owner and is partial recourse to the sponsor.

The second largest loan (8.8%) is secured by the 225,082 sf enclosed shopping center located in Ottawa, Ontario. The property, which was built in 1977 and renovated in 1994, is anchored by Farm Boy and Sport Chek. Sport Chek, which represents approximately 14% of the base rent, has a lease expiration in July 2014. The pari passu loan is full recourse to the borrowing entity and partial recourse to the sponsor.

The third largest loan (8.6%) is the Shoppers Drug Mart Portfolio which consists of eight cross-collateralized and cross-defaulted loans. Each loan is secured by a retail property fully leased by Shoppers Drug Mart. The portfolio consists of 141,093 sf and is located across Ontario in Ottawa, London, and Windsor.

Fitch affirms the following classes as indicated:

--$32.3 million class A-1 at 'AAAsf'; Outlook Stable;

--$96.4 million class A-2 at 'AAAsf'; Outlook Stable;

--$81.6 million class A-3 at 'AAAsf'; Outlook Stable;

--$5.3 million class B at 'AAsf'; Outlook Stable;

--$8.5 million class C at 'Asf'; Outlook Stable;

--$6.9 million class D at 'BBBsf'; Outlook Stable;

--$3.8 million class E at 'BBB-sf'; Outlook Stable;

--$3.1 million class F at 'BBsf'; Outlook Stable;

--$2.5 million class G at 'Bsf'; Outlook Stable.

All currencies are in Canadian dollars (CAD).

Fitch does not rate the $5 million class H and the interest-only class X.

A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:

--'IMSCI 2013-3 -- Appendix' (March 19, 2013).

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'IMSCI 2013-3' (Mar. 19, 2013);

--'IMSCI 2013-3 -- Appendix' (Mar. 19, 2013);

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

IMSCI 2013-3 -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=703959

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=818833

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.

Contacts

Fitch Ratings
Primary Analyst
Jeffrey Diliberto
Director
+1-212-908-9173
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Jeffrey Diliberto
Director
+1-212-908-9173
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com