NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 13 classes of WFRBS Commercial Mortgage Trust commercial mortgage pass-through certificates series 2013-C13. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
Fitch's affirmations are based on the stable performance of the underlying collateral pool. No loans have transferred to specially servicing since issuance. Fitch has designated one Fitch Loan of Concern (FLOC) due to upcoming tenant rollover risk.
As of the March 2016 distribution date, the pool's aggregate principal balance has been reduced by 3.3% to $848 million from $876.7 million at issuance. One loan (0.84%) is defeased. Deminimis interest shortfalls are currently affecting the non-rated class G.
The largest loan in the pool (10.1% of the pool) is secured by two office buildings located in San Francisco, CA. As of year-to-date (YTD) Sept. 30, 2015, the servicer reported occupancy and debt service coverage ratio (DSCR) were 99.8% and 2.34x, respectively. Amazon is the largest tenant, occupying approximately 40% of the net rentable area (NRA) with lease expiration in October 2019.
The second largest loan in the pool (10% of the pool) is secured by an 188,646 square feet (sf), 42-story office tower located in Charlotte, NC. The property now serves as the East Coast headquarters of Wells Fargo Bank (69.5% of NRA; lease expires Dec. 31, 2021). As of year-end 2015, the servicer reported occupancy and DSCR were 98% and 2.22x, respectively.
The FLOC (1.6% of the pool) is secured by a 130,410-sf anchored retail shopping center located in Marietta, GA. As of YTD Sept. 30, 2015, the servicer reported occupancy and DSCR were 100% and 2.28x, respectively. There is significant tenant rollover risk in 2017 (approximately 63.7%) primarily due to the anchor tenant's lease expiration; LA Fitness (37.1% of NRA) lease expires June 2017. Fitch will continue to monitor the loan as leasing status updates are received.
Rating Outlooks on classes A-1 through F are Stable due to increasing credit enhancement from continued pay down and the stable performance of the collateral. Future upgrades are unlikely due to limited upcoming loan maturities; 90.4% of the pool matures in 2023. Fitch does not foresee negative ratings migration unless a material economic and/or asset level event changes the transaction's portfolio-level metrics.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following classes:
--$27.5 million class A-1 at 'AAAsf'; Outlook Stable;
--$79.5 million class A-2 at 'AAAsf'; Outlook Stable;
--$200 million class A-3 at 'AAAsf'; Outlook Stable;
--$206.5 million class A-4 at 'AAAsf'; Outlook Stable;
--$686.6 million interest only class X-A at 'AAAsf'; Outlook Stable;
--$81.1 million interest only class X-B at 'A-sf'; Outlook Stable;
--$71.5 million class A-SB at 'AAAsf'; Outlook Stable;
--$91 million class A-S at 'AAAsf'; Outlook Stable;
--$51.5 million class B at 'AA-sf'; Outlook Stable;
--$29.6 million class C at 'A-sf'; Outlook Stable;
--$32.9 million class D at 'BBB-sf'; Outlook Stable;
--$15.3 million class E at 'BBsf'; Outlook Stable;
--$16.4 million class F at 'Bsf'; Outlook Stable.
Fitch does not rate the class G certificates or the interest only class X-C certificates.
Additional information is available at www.fitchratings.com.
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)
Dodd-Frank Rating Information Disclosure Form