CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 14 classes of WFRBS Commercial Mortgage Trust 2013-C16 certificates. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations reflect the stable performance of the underlying collateral pool since issuance. As of the July 2015 remittance, the pool has experienced 1.7% collateral reduction. 94.3% of the pool is reporting 2014 year-end financials and 68.8% of the pool is reporting partial year 2015 financials.
There are currently eight loans on the servicer's watchlist, representing 15.5% of the current pool balance, and no loans in special servicing.
RATING SENSITIVITIES
The Rating Outlook for all classes remains Stable. Due to the recent issuance of the transaction, limited historical servicer reporting 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.
The largest loan in the pool is secured by 997,549 square feet (sf) of space within the 1.6 million sf Westfield Mission Valley Mall in San Diego, CA. The property is situated just north of San Diego immediately off of Interstate 8. Macy's (not collateral), Target, Bed Bath & Beyond and Nordstrom Rack act as anchor tenants. The trust loan is pari-passu with a $55 million note that was securitized in the WFRBS 2013-C17 transaction. This loan is interest-only for the full term, and the interest-only DSCR for YE2014 was reported to be 3.04x.
The second largest loan is Brennan Industrial Portfolio which is secured by a portfolio of 23 industrial and two office properties located in 14 states across the country. All of the collateral properties were 100% occupied as of March 2015, and no leases are scheduled to expire until 2024; however, two tenants (2.8% of the portfolio NRA) have termination options in 2017 and 2018. This loan is interest-only for the full term, and the interest-only DSCR for YE2014 was reported to be 2.69x. The servicer has flagged this loan for the watchlist as a result of deferred maintenance identified at one of the collateral properties. Fitch does not expect this will have a material influence on the loan's performance.
The third largest loan in the pool is Augusta Mall. The collateral comprises 500,222 sf of the 1.1 million sf Augusta Mall. The property, built in 1978 and renovated in 2007, is located in Augusta, GA and anchored by Dillard's, Macy's, JC Penney and Sears. None of the anchors serve as collateral for the loan. The trust loan is pari-passu with a $110 million pari-passu note that was securitized in the WFRBS 2013-C15 transaction. This loan is interest-only for the full term, and the interest-only DSCR for YE2014 was reported to be 2.25x.
Fitch affirms the following classes as indicated:
--$35.2 million class A-1 at 'AAAsf'; Outlook Stable;
--$160.6 million class A-2 at 'AAAsf'; Outlook Stable;
--$43.9 million class A-3 at 'AAAsf'; Outlook Stable;
--$183 million class A-4 at 'AAAsf'; Outlook Stable;
--$221.6 million class A-5 at 'AAAsf'; Outlook Stable;
--$70.4 million class A-SB at 'AAAsf'; Outlook Stable;
--$100.7 million class A-S at 'AAAsf'; Outlook Stable;
--$56.2 million class B at 'AA-sf'; Outlook Stable
--$41.8 million class C at 'A-sf'; Outlook Stable;
--$0 class PEX at 'A-sf'; Outlook Stable;
--$47.1 million class D at 'BBB-sf'; Outlook Stable;
--$24.8 million class E at 'BB-sf'; Outlook Stable;
--$10.5 million class F at 'B-sf'; Outlook Stable;
--$815.5* million class X-A at 'AAAsf'; Outlook Stable.
*Notional amount and interest only
Fitch does not rate the class G and X-B certificates. Fitch previously withdrew the rating on the class X-C certificate. The class A-S, B and C certificates may be exchanged for the class PEX certificates, and the class PEX certificates may be exchanged for the class A-S, B and C certificates.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
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
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=989389
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=989389
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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