Press Release

DBRS Assigns Provisional Ratings to COMM 2013-CCRE6

CMBS
February 19, 2013

DBRS has today assigned provisional ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2013-CCRE6 (the Certificates), to be issued by the COMM 2013-CCRE6 Mortgage Trust. The trends are Stable.

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class X-A at AAA (sf)
-- Class A-3FL at AAA (sf)
-- Class A-3FX at AAA (sf)
-- Class X-B at AAA (sf)
-- Class A-M at AAA (sf)
-- Class B at AA (sf)
-- Class PEZ at A (sf)
-- Class C at A (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (sf)

Classes A-3FL, A-3FX, X-B, A-M, B, PEZ, C, D, E and F 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 PEZ certificates are exchangeable for the Class A-M, B and C certificates (and vice versa).

The collateral consists of 48 fixed-rate loans secured by 80 commercial properties. The transaction has a balance of $1,494,076,230. The pool consists of relatively low-leverage financing, with a DBRS weighted-average term debt service coverage ratio (DSCR) and debt yield of 1.99 times and 10.4%, respectively. The pool is relatively concentrated by loan balance and geography, with a concentration level equivalent to a pool of 20 equal-sized loans.

Loans secured by hotels represent 25.9% of the pool, including three of the largest ten loans. Hotel properties have higher cash flow volatility than traditional property types because their income, which is derived from daily contracts rather than multi-year leases, and their expenses, which are often mostly fixed, are quite high as a percentage of revenue. These two factors cause revenue to fall swiftly during a downturn and cash flow to fall even faster because of the high operating leverage. The DBRS sample included 26 loans, representing 87.6% of the pool balance. A relatively high percentage of properties from the DBRS sample were classified as Above Average or Excellent (29.5% of the sample, 25.8% of the pool), above the respective figures for other recently rated DBRS conduit transactions. The largest loan in the pool, representing 8.7% of the deal balance, was shadow-rated investment grade by DBRS.

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 after the date of issuance.

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 (January 2012), which can be found on our website under Methodologies.

Ratings

  • 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

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