DBRS Assigns Final Ratings to COMM 2013-CCRE11 Mortgage Trust

DBRS has today assigned final ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2013-CCRE11 (the Certificates), issued by COMM 2013-CCRE11 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-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class X-A 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 (low) (sf)
-- Class E at BB (sf)
-- Class F at B (sf)

Classes X-B, X-C, C, D, E and F will be privately placed pursuant to Rule 144A.

The Class X-A, X-B 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.

The collateral consists of 46 fixed-rate loans secured by 82 commercial, multifamily and manufactured housing properties. The transaction has a balance of $1,269,818,466. The pool exhibits a DBRS weighted-average term debt service coverage ratio (DSCR) and debt yield of 1.65 times (x) and 10.0%, respectively, based on the senior trust balances. The DBRS sample included 25 loans, representing 84.9% of the pool. Three loans, representing 16.1% of the pool, were shadow-rated investment grade by DBRS. Properties representing 31.3% of the pool are located in urban markets with increased liquidity, greater than transactions in the recent past that typically have urban concentrations of 15% to 20%. In addition, loans secured by properties located in tertiary and rural markets represent only 10.4%.

The pool is concentrated by loan size as the top ten loans represent 63.7% of the overall pool balance. The pool has a concentration level similar to a pool of 19 equal-sized loans. At 44.9% of the pool, the transaction has a high concentration of 12 loans with DBRS Refi DSCRs below 1.00x based on the trust balance. However, these DSCRs are based on a weighted-average stressed refinance constant of 9.9%, which implies an interest rate of 9.3%, amortizing on a 30-year schedule. This represents a significant stress of 4.1% 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, 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.