NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed Institutional Mortgage Securities Canada Inc.'s (IMSCI) Commercial Mortgage Pass-Through Certificates, Series 2013-4. 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 33 loans secured by 37 commercial properties. The loans were originated by Institutional Mortgage Capital, Limited Partnership.
KEY RATING DRIVERS
The affirmations are based on the stable performance of the underlying collateral pool. As of the November 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, 2014.
RATING SENSITIVITIES
All rated classes maintain Stable Outlooks. Due to the recent issuance of the transaction and no significant change reported in 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 2013-4' (June 12, 2014), available at www.fitchratings.com.
The largest portfolio, Toulon Portfolio (10.5% of the pool balance), consists of four cross-collateralized and cross-defaulted loans. The loans are secured by: two retail properties located in Yarmouth, Nova Scotia and Rouyn-Noranda, Quebec; one mixed-use property located in St. John's, Newfoundland; and one office building in Montreal, QC. The nonrecourse loans are sponsored by Toulon Development Corp., which owns more than 2.5 million square feet (sf) of real estate in eastern Canada, Quebec and the southeastern U.S.
The second largest loan, Calloway Courtenay (8.8% of the pool), is secured by a participation in a 272,795-sf shopping center located in Courtenay, British Columbia. Courtenay is located on Vancouver Island, approximately 190 kilometers northwest of the city of Vancouver. The property, which was developed in 2001, is anchored by Walmart. Other major tenants include Sport Chek, Future Shop, Winners and Staples. The loan is sponsored by Calloway REIT, which has a public investment-grade rating. In addition, the loan is full recourse to the sponsor.
Fitch affirms the following classes as indicated:
--$198.2 million class A-1 at 'AAAsf'; Outlook Stable;
--$80 million class A-2 at 'AAAsf'; Outlook Stable;
--$6.6 million class B at 'AAsf'; Outlook Stable;
--$11.2 million class C at 'Asf'; Outlook Stable;
--$9.1 million class D at 'BBBsf'; Outlook Stable;
--$5 million class E at 'BBB-sf'; Outlook Stable;
--$3.7 million class F at 'BBsf'; Outlook Stable;
--$3.3 million class G at 'Bsf'; Outlook Stable.
All currencies are in Canadian dollars (CAD).
Fitch does not rate the $6.6 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 2013-4 - Appendix' (June 12, 2014).
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'IMSCI 2013-4' (June 12, 2014);
--'IMSCI 2013-4 - Appendix' (June 12, 2014);
--'Canadian CMBS Default and Loss Study' (Oct. 10, 2013);
--'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:
IMSCI 2013-4
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749019
IMSCI 2013-4 -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749434
Canadian CMBS Default and Loss Study
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=719696
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=930035
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.