NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed six classes of COMM 2013-SFS Mortgage Trust. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations reflect the stable performance and strong occupancy of the underlying collateral. The collateral consists of the Scottsdale Fashion Square, a 1.4 million square foot (sf) super-regional mall located in Scottsdale, AZ. The property is anchored by Macy's, Nordstrom, Neiman Marcus, Barneys New York, and Dillard's (non-owned). Fitch reviewed the most recent available financial performance of the collateral; full year 2014 and year-to-date (YTD) June 30, 2015 performance data for the mall was provided. As it is considered one of the top regional malls in the country, Fitch applied a stressed capitalization rate lower than the typical range for retail properties, resulting in a Fitch stressed LTV of 67% compared to 69% at issuance.
As of the November 2015 distribution date, the loan's balance declined 5.4% to $496.6 million from $525 million at issuance due to scheduled amortization. Servicer reported occupancy and Debt Service Coverage Ratio (DSCR) were 97.3% and 2.12x respectively, as of year-end (YE) 2014. Approximately 10% in tenant rollover is scheduled for 2016. An additional 4.3% of collateral space could become vacant should Barney's exercise its termination option prior to its 2020 lease expiration, as sales continue to be below the $25 million trigger event. Sales for the anchor tenants have remained flat at $270 psf for the last three years as of YE 2014, while comparable sales for tenants greater than 10,000 sf declined over the same period: $352 psf (YE 2014); $385 psf (YE 2013) and $413 psf (YE 2012). Comparable sales for tenants less than 10,000 sf increased to $752 psf as of YE 2014 compared to $737 psf as of YE 2013.
RATING SENSITIVITIES
The Rating Outlooks for all classes remains Stable. No rating actions are anticipated unless there are material changes in the property's performance or cash flow. Fitch will continue to monitor the mall's performance to ensure that revenues and expenses considered at the time of Fitch's initial ratings remain in line over the loans' terms.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following classes:
--$96.1 million class A-1 at 'AAAsf'; Outlook Stable;
--$244.9 million class A-2 at 'AAAsf'; Outlook Stable;
--Interest only class X-A at 'AAAsf'; Outlook Stable;
--$67.3 million class B at 'AAsf'; Outlook Stable;
--$49.6 million class C at 'Asf'; Outlook Stable;
--$39.7 million class D at 'BBB+sf'; Outlook Stable.
Additional information is available at www.fitchratings.com.
Applicable Criteria
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage
Transactions (pub. 27 Aug 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870009
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=994417
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=994417
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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