DBRS Assigns Provisional Ratings to COMM 2013-CCRE8

DBRS has today assigned provisional ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2013-CCRE8 (the Certificates), to be issued by the COMM 2013-CCRE8 Mortgage Trust. The trends are Stable.

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class X-A at AAA (sf)
-- Class A-SBFL at AAA (sf)
-- Class A-SBFX at AAA (sf)
-- Class X-B at AAA (sf)
-- Class X-C at AAA (sf)
-- Class A-M at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (high) (sf)
-- Class D at BBB (sf)
-- Class E at BB (high) (sf)
-- Class F at B (high) (sf)

Classes A-SBFL, A-SBFX, X-B, X-C, A-M, B, C, D, E and F have been privately placed pursuant to Rule 144A.

The Class X-A, Class X-B and Class X-C 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 collateral consists of 59 fixed-rate loans secured by 94 commercial properties. The transaction has a balance of $1,384,644,050. The pool is relatively concentrated by loan balance with a concentration level equivalent to a pool of 20 equal-sized loans. However, the first- and sixth-largest loans (19.1% of the pool) are low-leverage loans that were assigned shadow ratings of AA (low) and AAA, respectively. In addition, if the 375 Park Avenue loan was excluded from the transaction, the pool concentration levels would be similar to a pool of 26 equal-sized loans. The pool is also concentrated in urban markets, representing 38.6% of the pool, which benefit from a larger investor, consumer and tenant base, even in times of stress.

The trust assets contributed from the largest loan, 375 Park Avenue, representing 15.1% of the pool, and the sixth-largest loan, The Paramount Building, representing 4.0% of the pool, were both shadow-rated investment grade by DBRS. Proceeds for the shadow-rated loans were floored at their respective rating within the pool. The DBRS sample included 28 loans, representing 78.8% of the pool balance. A relatively high percentage of properties from the DBRS sample were classified as Above Average or Excellent (47.3% of the sample, 37.3% of the pool), above the respective figures for other recently rated DBRS conduit transactions.

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.