Fitch Affirms Institutional Mortgage Securities Canada Inc. 2013-4

CHICAGO--()--Fitch Ratings has affirmed Institutional Mortgage Securities Canada Inc.'s (IMSCI) Commercial Mortgage Pass-Through Certificates series 2013-4. A detailed list of rating actions follows at the end of this release.

The certificates represent the beneficial ownership in the trust, primary assets of which are 33 loans secured by 37 commercial properties. The loans were originated by Institutional Mortgage Capital, Limited Partnership.

KEY RATING DRIVERS

The affirmations are based on the stable performance of the underlying collateral pool. As of the October 2015 remittance, the pool has had no delinquent or specially serviced loans. The pool's aggregate principal balance has been paid down by approximately 4.1% since issuance. There are no interest shortfalls as of the remittance date.

The largest portfolio, Toulon Portfolio (10.5% of the pool balance), consists of four cross-collateralized and cross-defaulted loans. The loans are secured by: two retail properties located in Yarmouth, Nova Scotia and Rouyn-Noranda, Quebec; one mixed-use property located in St. John's, Newfoundland; and one office building in Montreal, QC. The nonrecourse loans are sponsored by Toulon Development Corp., which owns more than 2.5 million square feet (sf) of real estate in eastern Canada, Quebec and the southeastern U.S.

The second largest loan, Calloway Courtenay (8.9% of the pool), is secured by a participation in a 272,795-sf shopping center located in Courtenay, British Columbia. Courtenay is located on Vancouver Island, approximately 190 kilometers northwest of the city of Vancouver. The property, which was developed in 2001, is anchored by a Walmart Supercentre. Other major tenants include Sport Chek, Future Shop, Winners and Staples. The loan is sponsored by SmartREIT (formerly known as Calloway REIT), which has a public investment-grade rating. In addition, the loan is full recourse to the sponsor.

RATING SENSITIVITIES

All rated classes maintain Stable Outlooks. Due to the recent issuance of the transaction and no significant change reported in 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 'IMSCI 2013-4' (June 12, 2014), available at www.fitchratings.com.

DUE DILIGENCE USAGE

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

Fitch has affirmed the following ratings:

--$191.5 million class A-1 at 'AAAsf'; Outlook Stable;

--$80 million class A-2 at 'AAAsf'; Outlook Stable;

--$6.6 million class B at 'AAsf'; Outlook Stable;

--$11.2 million class C at 'Asf'; Outlook Stable;

--$9.1 million class D at 'BBBsf'; Outlook Stable;

--$5 million class E at 'BBB-sf'; Outlook Stable;

--$3.7 million class F at 'BBsf'; Outlook Stable;

--$3.3 million class G at 'Bsf'; Outlook Stable.

All currencies are in Canadian dollars (CAD).

Fitch does not rate the $6.6 million class H and the interest-only class X.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

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

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

Related Research

IMSCI 2013-4 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749434

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=993915

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=993915

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Primary Analyst
Jeffrey Diliberto
Director
+1-312-368-3268
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, +1-212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Jeffrey Diliberto
Director
+1-312-368-3268
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, +1-212-908-0278
sandro.scenga@fitchratings.com