DBRS Confirms Ratings of Citigroup Commercial Mortgage Trust 2013-GC15

DBRS Limited (DBRS) has today confirmed the ratings on the following classes of CG Commercial Mortgage Trust 2013-GC15, Commercial Mortgage Pass-Through Certificates, Series 2013-GC15.

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

All trends are Stable. DBRS does not rate the first loss piece, Class G. The Class A-S, Class B, and Class C certificates may be exchanged for the Class PEZ certificates (and vice versa).

This transaction closed in September 2013 and consists of 92 loans, secured by 129 properties. The pool has experienced approximately 1.6% of collateral reduction since issuance. As of the June 2015 remittance, the weighted-average (WA) debt service coverage ratio (DSCR) and the WA debt yield for the pool was 1.60 times (x) and 10.0%, respectively. The transaction benefits from being diverse as the largest ten loans represent only 38.5% of the current pool balance. In addition, 27.5% of the pool is concentrated within urban markets.

As of the June 2015 remittance, there are 13 loans, representing 24.7% of the current pool balance, on the servicer’s watchlist. Three of these loans are above 1.0% of the pool balance and one is within the largest 15 loans. Group 10 Hotel Portfolio (Prospectus ID #10), representing 2.3% of the current pool balance, is made up of three hotel properties located near the Detroit Metropolitan Wayne County Airport in Romulus, Michigan. Included are two limited-service hotels, Fairfield Inn & Suites and SpringHill Suites and one full-service hotel, Four Points by Sheraton. This loan is on the watchlist due to a major deferred maintenance item reported on the October 2014 site inspection. Four Points by Sheraton has one room that is down due to a roof leak which lead to the ceiling drywall being damaged. In addition, the asphalt parking area is showing cracking and signs of deterioration. It was also noted in the site inspection that the hotel is scheduled for a complete makeover within six months. All three properties were determined to be in average condition. The YE2014 DSCR for the portfolio is 1.38x, increasing from prior year of 1.31x and the DBRS UW DSCR of 1.25x. Per the most recent STR report, occupancy, ADR and RevPAR are all in line with expectations at issuance and reported increases when compared to trailing 12 months ending June 2013.

DBRS continues to monitor this transaction, with additional information on the DBRS viewpoint for this transaction. For more information on this credit or on this industry, visit ww.dbrs.com or contact us at info@dbrs.com.

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.

All classes are privately placed pursuant to Rule 144a. The Class X-A 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 applicable methodologies are North American CMBS Rating Methodology (March 2015) and CMBS North American Surveillance (January 2015), which can be found on our website under Methodologies.