Press Release

DBRS Finalizes Ratings on MSBAM 2013-C7

CMBS
January 30, 2013

DBRS has today assigned final ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2013-C7 (the Certificates) issued by Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7. The trends are Stable.

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-AB at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)
-- Class B at AA (sf)
-- Class PST at A (sf)
-- Class C at A (sf)
-- Class D at BBB (sf)
-- Class E at BB (high) (sf)
-- Class F at BB (sf)
-- Class G at B (sf)

Classes X-B, D, E, F, G and H have been privately placed pursuant to Rule 144a.

The Class X-A and Class X-B balances are notional. DBRS ratings on interest-only certificates address the likelihood of receiving interest based on the notional amount outstanding. DBRS considers the interest-only certificate’s position within the transaction payment waterfall when determining the appropriate rating. The Class PST certificates are exchangeable for the Class A-S, B and C certificates (and vice versa).

The collateral consists of 64 fixed-rate loans secured by 123 commercial properties. The transaction has a balance of $1,394,023,886. The pool consists of relatively low-leverage financing, with a DBRS weighted-average term debt service coverage ratio (DSCR) and debt yield of 1.71 times (x) and 9.6%, respectively. The pool is relatively diverse in terms of locations, loan size and property, with a concentration level equivalent to a pool of 22 equal-sized loans.

Loans secured by hotel properties represent 16.0% of the pool, including four of the largest 15 loans. Although hotel properties have higher cash flow volatility than traditional property types, these loans feature stronger credit characteristics than the overall pool, with a WA DBRS Exit Debt Yield of 13.5%. The DBRS sample included 30 loans, representing 78.7% of the pool. A relatively high percentage of properties from the DBRS sample were classified as Above Average (24.9% of the sample, 19.6% of the pool), above the respective figures for other recently rated DBRS conduit transactions. In addition, the pool’s combined tertiary and rural concentration of 4.3% is relatively low compared with other transactions issued since 2010, which often had a combined tertiary/rural concentration of approximately 20%. DBRS considered the credit characteristics of two loans, representing 5.3% of the pool, to be consistent with investment-grade risk.

The ratings assigned to the Certificates by DBRS are based exclusively on the credit provided by the transaction structure and underlying trust assets. All classes will be subject to ongoing surveillance, which could result in upgrades or downgrades by DBRS.

Notes:
All figures are in U.S. dollars unless otherwise noted.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodology is CMBS Rating Methodology, which can be found on our website under Methodologies.

Ratings

  • Date IssuedDebt RatedRatingTrendActionAttributesi
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class A-1AAA (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class A-2AAA (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class A-3AAA (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class A-4AAA (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class A-ABAAA (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class A-SAAA (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class X-AAAA (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class X-BAAA (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class BAA (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class CA (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class PSTA (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class DBBB (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class EBB (high) (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class FBB (sf)StbProvis.-Final
    US
    30-Jan-13Commercial Mortgage Pass-Through Certificates, Series 2013-C7, Class GB (sf)StbProvis.-Final
    US
    More
    Less
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7
  • US = Lead Analyst based in USA
  • CA = Lead Analyst based in Canada
  • EU = Lead Analyst based in EU
  • UK = Lead Analyst based in UK
  • E = EU endorsed
  • U = UK endorsed
  • Unsolicited Participating With Access
  • Unsolicited Participating Without Access
  • Unsolicited Non-participating

ALL MORNINGSTAR DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING MORNINGSTAR DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.