DBRS Assigns Provisional Ratings to COMM 2013-CCRE10

DBRS has today assigned provisional ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2013-CCRE10 (the Certificates), to be issued by the COMM 2013-CCRE10 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-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class A-3FL at AAA (sf)
-- Class A-3FX at AAA (sf)
-- Class A-M at AAA (sf)
-- Class B at AA (sf)
-- Class PEZ at A (high) (sf)
-- Class C at A (high) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (sf)

Classes A-3FL, A-3FX, A-M, B, PEZ, C, D, E and F have been privately placed pursuant to Rule 144A.

The Class X-A balance is 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.

All or a portion of the Class A-3FL certificates may be exchanged for Class A-3FX certificates. The aggregate certificate balance of the Class A-3FL certificates and Class A-3FX certificates will, at all times, equal the certificate balance of the Class A-3FL/FX regular interest.

Up to the full certificate balance of the Class A-M, Class B and Class C certificates may be exchanged for Class PEZ certificates. Class PEZ certificates may be exchanged for up to the full certificate balance of the Class A-M, Class B and Class C certificates.

The collateral consists of 59 fixed-rate loans secured by 87 commercial, multifamily and manufactured housing properties. The transaction has a balance of $1,010,397,899. The pool is relatively concentrated by loan balance, with a concentration level equivalent to a pool of 29 equal-sized loans. However, the first- and fourth-largest loans (14.7% of the pool) are low-leverage loans that were assigned shadow ratings of A (low) and BBB, respectively. The pool is also concentrated in urban and suburban markets, representing 91.5% 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, One Wilshire, representing 9.9% of the pool, and the fourth-largest loan, Raytheon & DirecTV Buildings, representing 4.8% 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 29 loans, representing 75.6% of the pool balance. The WA DBRS Refi DSCR is strong at 1.19x, based on a weighted-average stressed refinance constant of 10.66%, which implies an interest rate of 10.15%, amortizing on a 30-year schedule. This represents a significant stress of 5.29% over the weighted-average contractual interest rate of the loans in the pool.

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.