Fitch Affirms MSBAM 2013-C8
NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 14 classes of Morgan Stanley Capital I, Inc. (MSBAM), commercial mortgage pass-through certificates, series 2013-C8. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are the result of stable performance of the underlying pool since issuance. As of the January 2014 distribution date, the pool's aggregate principal balance has been reduced by 1% to $1.13 billion from $1.14 billion at issuance. There are currently no delinquent or specially serviced loans.
The largest loan in the pool, The Crossings Premium Outlets (10.2% of the pool), is secured by a 411,223 square foot (sf) retail outlet center located in Tannersville, PA. The property rent roll is diverse, accommodating 107 tenants with no individual tenant accounting for more than 3.5% of the subject's gross leasable area (GLA). As of third quarter 2013 (3Q'13), occupancy was reported at 99%, compared to 100% at year-end (YE) December 2012 and at issuance. The net operating income (NOI) debt service coverage ratio (DSCR) reported at 4.1x for year-to-date (YTD) 3Q'13, compared to 3.79x at YE 2012.
The second largest loan in the pool, Chrysler East Building (8.9% of the pool), is secured by a 745,201 sf office property in the Grand Central submarket of Manhattan in New York City. The loan is part of a pari-passu loan combination evidenced by two notes in the aggregate principal amount of $265 million. As of 3Q'13, occupancy was reported at 89%, compared to 96% at issuance. The servicer reported NOI DSCR was 1.99x as of the September 2013 trailing 12 months (TTM), compared to 2.07x at issuance.
Fitch has identified one loan of concern, which represents 0.71% of the pool. The loan is secured by a 70,075 sf retail property located in Appleton, WI. As of 3Q'13, the property had a NOI DSCR of 1.76x and was 100% occupied. The loan was designated a loan of concern due to the lease of a major tenant, occupying 24,962 sf (36% of GLA), expiring on Jan 31, 2014. Fitch has not been updated as to the status of the lease.
All classes maintain Stable Outlooks. Due to the recent issuance of the transaction 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. Additional information on rating sensitivity is available in the report 'Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C8,' (April 5, 2013), available at www.fitchratings.com.
Fitch affirms the following classes as indicated:
--$64.6 million class A-1 at 'AAAsf', Outlook Stable;
--$145.9 million class A-2 at 'AAAsf', Outlook Stable;
--$99 million class ASB at 'AAAsf', Outlook Stable;
--$140 million class A-3 at 'AAAsf', Outlook Stable;
--$336 million class A-4 at 'AAAsf', Outlook Stable;
--$108.1 million class A-S at 'AAAsf', Outlook Stable;
--$68.3 million class B at 'AA-sf', Outlook Stable;
--$42.7 million class C at 'A-sf', Outlook Stable;
--$0 class PST at 'A-sf', Outlook Stable;
--$48.4 million class D at 'BBB-sf', Outlook Stable;
--$19.9 million class E at 'BBsf', Outlook Stable;
--$12.8 million class F at 'Bsf', Outlook Stable;
--$893.6 million* class X-A at 'AAAsf'; Outlook Stable;
--$68.3 million* class X-B at 'AA-sf'; Outlook Stable.
*Notional amount and interest-only
Fitch does not rate the class G and H certificates.
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:
--'Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C8 -- Appendix' (Apr. 05, 2013).
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at www.fitchratings.com under the following headers:
Structured Finance >> CMBS >> Criteria Reports
Additional information is available at www.fitchratings.com.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (May 24, 2013);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).
Applicable Criteria and Related Research:
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
Global Structured Finance Rating Criteria