CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 14 classes of J.P. Morgan Chase Commercial Mortgage Securities Trust (JPMCC) commercial mortgage pass-through certificates series 2013-C16. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations reflect the overall stable performance of the pool. The pool has had no delinquent or specially serviced loans. Three loans appear on the servicer watchlist (6.6% of the pool) due to decreases in the debt service coverage ratio (DSCR); however, none are Fitch Loans of Concern as the declines in DSCR are due to rental concessions or other factors known at issuance. Loans representing 27.7% of the pool reported year-end (YE) 2013 financial information.
As of the October 2014 distribution date, the pool's aggregate principal balance has been reduced by 0.7% to $1.13 billion from $1.14 billion at issuance. No loans are defeased.
The largest loan in the pool (11.96%) is secured by The Aire located on the upper west side of Manhattan. The property is a 310-unit, 42-story luxury residential building constructed in 2010 that features numerous amenities and high-end finishes. Lincoln Center and The Julliard School are located across the street from The Aire, and Central Park, Riverside Park and The Shops at Columbus Circle are within walking distance. The loan is subject to a $90 million pari-passu note which is part of the JPMCC 2013-C17 transaction. The collateral is performing in line with underwritten expectations with occupancy of 97% (as of September 2014) and a YE 2013 DSCR of 1.39x.
The next largest loan (6.96%) is secured by the Veritas Multifamily Portfolio, a 45-property portfolio of multifamily properties in San Francisco, CA. The portfolio contains 1,230 residential apartments and 22 commercial units across eight San Francisco neighborhoods. The loan has a pari passu A-note for total debt outstanding on the portfolio of $211.5 million. The collateral is performing in line with underwritten expectations with occupancy of 92% (as of June 2014) and a 1.43x DSCR.
The third largest loan (5.67%) is secured by Energy Center, a 39-story, 757,275-square foot (sf) office tower located in New Orleans, LA. Developed in 1984 and renovated in 2003 and 2009, the property is located within walking distance of all of downtown New Orleans and has convenient access to the city's federal buildings and courthouses. As of June 2014, occupancy was reported to be 90% and the DSCR was 2.04x, which is an increase from 1.94x at issuance.
RATING SENSITIVITIES
Rating Outlooks on classes A-1 through F remain Stable due to overall stable collateral performance. No rating changes are expected in the next few years unless there is a material deterioration in occupancy or cash flow at any of the properties.
Additional information on rating sensitivity is available in the report 'J.P. Morgan Chase Commercial Mortgage Securities Trust 2013-C16' (April 8, 2014), available at 'www.fitchratings.com'.
Fitch affirms the following classes as indicated:
--$49.2 million class A-1 at 'AAAsf', Outlook Stable;
--$236.6 million class A-2 at 'AAAsf', Outlook Stable;
--$145 million class A-3 at 'AAAsf', Outlook Stable;
--$276.2 million class A-4 at 'AAAsf', Outlook Stable;
--$80.5 million class A-SB at 'AAAsf', Outlook Stable;
--$871.3 million class X-A at 'AAAsf', Outlook Stable;
--$73.8 million class X-B at 'AA-sf', Outlook Stable;
--$83.8 million class A-S at 'AAAsf', Outlook Stable;
--$73.8 million class B at 'AA-sf', Outlook Stable;
--$41.2 million class C at 'A-sf', Outlook Stable;
--$198.8 million class EC* at 'A-sf', Outlook Stable;
--$56.8 million class D at 'BBB-sf', Outlook Stable;
--$21.3 million class E at 'BBsf', Outlook Stable;
--$11.4 million class F at 'Bsf', Outlook Stable.
* Class A-S, B and C certificates may be exchanged for a related amount of class EC certificates, and class EC certificates may be exchanged for class A-S, B and C certificates.
Fitch does not rate the class NR certificates or the interest-only class X-C.
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:
--'J.P. Morgan Chase Commercial Mortgage Securities Trust 2013-C16' (April 8, 2014)
--'J.P. Morgan Chase Commercial Mortgage Securities Trust 2013-C16 - Appendix' (April 8, 2014)
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:
Structured Finance >> CMBS >> Criteria Reports
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=917596
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