DBRS Confirms Ratings of WFRBS Commercial Mortgage Trust 2013-C18

DBRS, Inc. (DBRS) has today confirmed all classes of WFRBS Commercial Mortgage Trust 2013-C18 as follows:

-- 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 A-S at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class PEX at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (sf)

All trends are Stable.

The rating confirmations reflect the stable performance of the pool since issuance. The collateral consists of 67 fixed-rate loans secured by 73 commercial and multifamily properties. As of the November 2014 remittance, the pool had a balance of $1.03 billion, representing a collateral reduction of 0.6% since issuance due to scheduled loan amortization.
At issuance, DBRS assigned an investment-grade shadow rating to two loans, Garden State Plaza (Prospectus ID#1, 14.5% of the current pool) and The Outlet Collection – Jersey Gardens (Prospectus ID#3, 13.6% of the current pool balance). DBRS has today confirmed that the performance of these loans remain consistent with the investment-grade loan characteristics.

As of the November 2014 remittance report, there was one loan on the servicer’s watchlist, representing 1.0% of the current pool balance. The Renaissance Apartments (Prospectus ID#22) is secured by a 142-unit apartment building located in downtown Atlanta, Georgia. This loan was added to the servicer’s watchlist after the Q2 2014 debt service coverage ratio (DSCR) decreased to 1.03x as a result of an increase in expenses. According to the servicer, the increase was a result of many factors, including a rise in cost for utilities, insurance premiums, professional fees and general administrative costs. According to the June 2014 rent roll, the property was 95.1% occupied with average rental rates of approximately $1,170/unit. According to the Reis Q3 2014 multifamily market report for the Midtown submarket, the subject compares similarly to the submarket, which reports average rents of $1,340/unit and average vacancy of 4.2% for properties built from 2000 to 2009.

The DBRS analysis included an in-depth review of the 15 largest loans in the transaction and the loan on the servicer’s watchlist, which collectively represent 75.7% of the current pool balance.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction including details on the largest loans in the pool. The November 2014 Monthly Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.