DBRS Assigns Final Ratings to CGCMT 2013-GC15
CMBSDBRS has today assigned final ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2013-GC15 (the Certificates), to be issued by Citigroup Commercial Mortgage Trust 2013-GC15. 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-AB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class A-S at AAA (sf)
-- Class B at AA (high) (sf)
-- Class PEZ at A (sf)
-- Class C at A (sf)
-- Class X-C at AAA (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (high) (sf)
Classes X-C, D, E and F have been privately placed pursuant to Rule 144A.
The Class X-A and 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.
Up to the full certificate balance of the Class A-S, 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-S, Class B and Class C certificates.
The collateral consists of 97 fixed-rate loans secured by 129 commercial, multifamily and manufactured housing properties. The transaction has a balance of $1,115,180,033. The pool exhibits a DBRS weighted-average term debt service coverage ratio (DSCR) and debt yield of 1.51 times (x) and 9.4%, respectively. The DBRS sample included 35 loans, representing 61.9% of the pool. The pool has a high concentration of properties located in urban markets (25.5% of the pool), which benefit from a larger investor, consumer and tenant base even in times of stress. The pool benefits from diversity in terms of location, loan size and property, with a concentration level equivalent to a pool of 44 equal-sized loans.
Loans secured by hotels represent 14.8% of the pool, including two 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. None of the loans in the pool have additional existing secured debt in place that is subordinate in right of payment to the trust balance. Future additional secured debt is not permitted for any 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, which can be found on our website under Methodologies.
The Rule 17g-7 Report of Representations and Warranties is hereby incorporated by reference and can be found by clicking on the link to the right under Other Research or by contacting us at info@dbrs.com.