Fitch Affirms MSBAM 2013-C10

NEW YORK--()--Fitch Ratings has affirmed 18 classes of Morgan Stanley Bank of America Merrill Lynch Trust (MSBAM) commercial mortgage pass-through certificates series 2013-C10. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect overall stable performance of the pool. Fitch has not designated any loans as Fitch Loans of Concern, and no loans are in special servicing. There is a notable hotel exposure within the transaction; 16.5% of the pool is secured by hotel properties, including three of the top 15 loans.

As of the May 2015 distribution date, the pool's aggregate principal balance has been reduced by 2.5% to $1.45 billion from $1.49 billion at issuance. No loans are defeased. Interest shortfalls are currently affecting class J.

The largest loan (9.8% of the pool) is secured by a 1.1 million square foot (sf) (506,914-sf collateral) regional mall located in Tampa, FL. The collateral is approximately 90% occupied as of September 2014 and includes a 20-screen Regal Cinemas Theater, several junior anchor spaces, and 287,872 sf of in-line space. The Regal Cinemas Theater recently extended their lease through December 2024. The property, built in 1999, completed a $10 million renovation in 2007 that included the addition of a Dick's Sporting Goods. The servicer reported debt service coverage ratio (DSCR) was 1.80x as of September 2014 compared to 1.69x at issuance.

The next largest loan (7.6% of the pool) is secured by the leased fee interest in a 19,862 sf parcel of land below a full-service hotel in Manhattan. The property is subject to a net lease, which is supported by hotel operations, and has a term of 99 years. The recently renovated, 1,331-key hotel spans an entire city block and is located in the theater district, one block west of Times Square. The servicer reported DSCR as of June 2014was 1.68x.

The third largest loan (7.2% of the pool) is secured by a nine-story 232,521-sf office property located in Washington, D.C. Built in 1965, the property underwent a complete renovation and re-tenanting and is now leased to six tenants. The property is located in the Capital Hill submarket and has close proximity to Union Station and the U.S. Capital Building. Occupancy as of September 2014 was reported to be 91%. The DSCR at year-end 2013 was reported to be 1.86x compared to 2.08x at issuance. An increase in expenses from issuance has negatively impacted the DSCR.

RATING SENSITIVITIES

Rating Outlooks on classes A-1 through H remain Stable due to overall stable collateral performance. Fitch does not foresee positive or negative ratings migration unless a material economic or asset level event changes the underlying transaction's portfolio-level metrics.

Additional information on rating sensitivity is available in the report 'MSBAM Commercial Mortgage Trust 2013-C10' (July 8, 2013), available at 'www.fitchratings.com'.

Fitch affirms the following classes as indicated:

--$58.4 million class A-1 at 'AAAsf', Outlook Stable;

--$34.2 million class A-2 at 'AAAsf', Outlook Stable;

--$126.5 million class A-SB at 'AAAsf', Outlook Stable;

--$200 million class A-3 at 'AAAsf', Outlook Stable;

--$125 million class A-3FL at 'AAAsf', Outlook Stable;

--$0 class A-3FX at 'AAAsf', Outlook Stable;

--$544.1 million class X-A at 'AAAsf'; Outlook Stable;

--$359.5 million class A-4 at 'AAAsf', Outlook Stable;

--$100 million class A-5 at 'AAAsf', Outlook Stable;

--$111.4 million class A-S* at 'AAAsf', Outlook Stable;

--$100.3 million class B* at 'AA-sf', Outlook Stable;

--$52 million class C* at 'A-sf', Outlook Stable;

--$263.7 million class PST* at 'A-sf', Outlook Stable;

--$53.9 million class D at 'BBB-sf', Outlook Stable;

--$22.3 million class E at 'BBB-sf', Outlook Stable;

--$16.7 million class F at 'BB+sf', Outlook Stable;

--$20.4 million class G at 'BB-sf', Outlook Stable;

--$16.7 million class H at 'Bsf', Outlook Stable.

* Classes A-S, B, and C certificates may be exchanged for class PST certificates, and class PST certificates may be exchanged for classes A-S, B, and C certificates.

Fitch does not rate the class J 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 reports:

--'MSBAM Commercial Mortgage Trust 2013-C10 (July 8, 2013)

--'MSBAM Commercial Mortgage Trust 2013-C10 - Appendix' (July 8, 2013).

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 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' (March 31, 2015);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985070

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Daniel Anderson
Associate Director
+1-312-606-2305
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Daniel Anderson
Associate Director
+1-312-606-2305
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com