NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 14 classes of COMM 2013-CCRE12 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 due to the stable performance of the underlying collateral pool since issuance. As of the September 2014 distribution date, the pool's aggregate principal balance has been reduced by 0.57% to $1.19 billion from $1.20 billion at issuance. Of the loans in the pool, 75% reported 2013 year-end financials. There are currently no specially serviced loans. Fitch has designated five loans (10.1%) as Fitch Loans of Concern, all of which are also reported on the servicer Watchlist. The Fitch Loans of Concern are either performing at or slightly below issuance expectations and Fitch does not anticipate imminent default on these loans at this time.
The Rating Outlook for all classes remains Stable. 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 COMM 2013-CCRE12' (Feb. 19, 2014), available at 'www.fitchratings.com'.
The largest loan of the pool, 175 West Jackson (12.61% of the pool), is secured by a 1,452,390 square foot (sf), 22-story office building located within the central business district of Chicago, IL. The loan is split into three pari-passu notes with a total debt of $280 million which is comprised of the subject loan ($150 million), a $90 million note within the COMM 2013-CCRE13 transaction and a $40 million note within the COMM 2014-CCRE14 transaction. The property continues to perform as expected at underwriting with a 2013 net operating income (NOI) debt service coverage ratio (DSCR) of 1.46x and a year-to-date 2014 (as of May 2014) NOI DSCR of 1.70x. Occupancy remains stable at 92% as of May 2014.
As noted during the initial underwriting of this transaction the second largest tenant, Grant Thornton (9.2% net rentable area), intends to exercise an early termination clause in October 2015. According to the servicer, the borrower continues to work with large prospective tenants in efforts to backfill the Grant Thornton space.
The second largest loan (12.19%) is secured by the Miracle Mile Shops, a 448,835 sf retail mall located along Las Vegas Boulevard, at the base of the Planet Hollywood Resort & Casino, in Las Vegas, NV. The tenant base is geared to focus on the high foot traffic along the Las Vegas Strip and include tenants such as V Theatre, Planet Hollywood and GAP. The loan has an additional five pari-passu notes for total debt outstanding on the Miracle Mile Shops of $580 million. The collateral is performing in line with underwritten expectations with occupancy of 90% (as of June 2014) and a 2013 NOI DSCR of 1.44x.
The third largest loan (5.72%) is secured by a corporate office park consisting of four suburban office buildings totaling 447,546 sf located in Berwyn, PA. Major tenants include Turner Investment Partners, Ratner & Prestia, and Brinker Capital. Occupancy remains stable at 81% (as of March 2014), the same occupancy at the time of underwriting.
Fitch affirms the following classes as indicated:
--$54.9 million class A-1 at 'AAAsf', Outlook Stable;
--$98.5 million class A-2 at 'AAAsf', Outlook Stable;
--$96.5 million class A-SB at 'AAAsf', Outlook Stable;
--$225 million class A-3 at 'AAAsf', Outlook Stable;
--$356 million class A-4 at 'AAAsf', Outlook Stable;
--$76.3 million class A-M at 'AAAsf', Outlook Stable;
--$79.3 million class B at 'AA-sf', Outlook Stable;
--$150 million class PEZ at 'A-sf', Outlook Stable;
--$49.4 million class C at 'A-sf', Outlook Stable;
--$64.3 million class D at 'BBB-sf', Outlook Stable;
--$23.9 million class E at 'BBsf', Outlook Stable;
--$16.5 million class F at 'Bsf', Outlook Stable;
--$907.1 million* class X-A at 'AAAsf'; Outlook Stable;
--$193 million* class X-B at 'BBB-sf'; Outlook Stable.
*Notional amount and interest only.
Fitch does not rate the class G or class X-C certificates. The class A-M, B, and C certificates may be exchanged for the class PEZ certificates, and the class PEZ certificates may be exchanged for the class A-M, B, and C certificates. Fitch rates the class PEZ equivalent to the first loss of the lowest rated class C exchangeable certificates.
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' (Aug. 4, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria