Fitch Affirms WFRBS 2013-C18

CHICAGO--()--Fitch Ratings has affirmed 14 classes in WFRBS Commercial Mortgage Trust series 2013-C18 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are based on the stable performance of the underlying collateral pool. As of the September 2016 remittance, the pool has experienced 2.2% collateral reduction since issuance.

There have been no delinquent or specially serviced loans since issuance. There are currently two loans on the servicer's watchlist, representing 2.4% of the current pool balance. Fitch modelled losses of 3.2% for the remaining pool, which is in line with Fitch's modelled loss at issuance. Since the last rating action, one loan has defeased.

The largest loan in the pool is Garden State Plaza (14.8% of the pool). The subject is a 2.2 million square foot (sf) super regional mall in Paramus, NJ that is anchored by Macy's, Nordstrom, Neiman Marcus, Lord & Taylor and J.C. Penney. The mall was originally built in 1957 and most recently renovated in 2013 at a cost of $159 million. Other major tenants include a 16-screen AMC Loews, Forever 21, Best Buy and H&M. The loan is interest-only for the full term, and is pari-passu with a $150 million note securitized in the RBSCF 2013-GSP transaction. For the trailing 12-month (TTM) period ending March 31, 2016, in-line sales were reported at $647 per square foot (psf). This is a decline from the $787 psf reported at issuance, but is still considered strong. Mall sales are strong despite being open only six days a week, due to Bergen County Blue Laws prohibiting local retailers from being open on Sundays.

The second largest loans loan is secured by a 1.3 million sf outlet mall located 15 miles southwest of New York City. Anchors include Burlington Coat Factory, Forever 21, Cohoes Fashions and a 22-screen Loews Theatres. The loan is interest-only for the full term, and is one of three pari-passu notes with a whole loan balance of $350 million. Glimcher was the original property owner before the company was acquired in 2014. The subject is now exclusively owned and operated by Simon Property Group and has been rebranded as The Mills at Jersey Gardens. Sales for the TTM period ending April 30, 2016 were reported to be $857 psf for in-line space. Gross sales have exceeded $500 million annually since 2010.

The third largest loan, AmericasMart, is secured by a 7.1 million sf wholesale trade market with approximately 4.6 million sf of rentable area in four attached buildings. The property is located in the Atlanta CBD and was developed in phases, the first of which was completed in 1961. There are over 1,500 permanent tenants occupying 3.5 million sf, and 1.1 million sf of temporary exhibition space can be leased during trade shows. As of May 2016, the property was 99% leased. The trust note, which is one of four notes with a whole loan balance of $541 million, amortizes on a 25-year schedule.

RATING SENSITIVITIES

The pool has been paid down by 2.2% since issuance, and loans representing 33.8% of the current balance are interest-only. Future deleveraging of the pool could result in upgrades, while material negative economic or asset level changes could result in downgrades; however, the pool's performance has been stable since issuance and Fitch does not foresee positive or negative ratings migration in the near term. The Rating Outlook for all classes remains Stable.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10

No third party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following classes as indicated:

--$25.2 million class A-1 at 'AAAsf', Outlook Stable;

--$103.3 million class A-2 at 'AAAsf', Outlook Stable;

--$140 million class A-3 at 'AAAsf', Outlook Stable;

--$170 million class A-4 at 'AAAsf', Outlook Stable;

--$201 million class A-5 at 'AAAsf', Outlook Stable;

--$63.7 million class A-SB at 'AAAsf', Outlook Stable;

--$70.1 million class A-S at 'AAAsf', Outlook Stable;

--$773.3 million* class X-A at 'AAAsf', Outlook Stable;

--$72.7 million class B at 'AA-sf', Outlook Stable;

--$36.3 million class C at 'A-sf', Outlook Stable;

--$0 class PEX at 'A-sf', Outlook Stable;

--$66.2 million class D at 'BBB-sf', Outlook Stable;

--$19.5 million class E at 'BBsf', Outlook Stable;

--$7.8 million class F at 'Bsf', Outlook Stable.

*Notional amount and interest-only.

The class A-S, B and C certificates may be exchanged for class PEX certificates, and vice versa. Fitch does not rate the class G certificate.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016)

https://www.fitchratings.com/site/re/886006

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 16 Jun 2016)

https://www.fitchratings.com/site/re/882401

Global Structured Finance Rating Criteria (pub. 27 Jun 2016)

https://www.fitchratings.com/site/re/883130

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/site/re/873395

Related Research

WFRBS Commercial Mortgage Trust 2013-C18 -- Appendix

https://www.fitchratings.com/site/re/729435

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1013009

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1013009

Endorsement Policy

https://www.fitchratings.com/regulatory

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Contacts

Fitch Ratings
Primary Analyst
Roxanna Tangen
Associate Director
+1-312-368-3116
Fitch Ratings, Inc.
70 W Madison St.
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Roxanna Tangen
Associate Director
+1-312-368-3116
Fitch Ratings, Inc.
70 W Madison St.
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com