DBRS Upgrades Three Classes of COMM 2013-CCRE6

DBRS Limited (DBRS) has today upgraded the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2013-CCRE6 (the Certificates) issued by COMM 2013-CCRE6 Mortgage Trust:

-- Class B to AA (high) (sf) from AA (sf)
-- Class PEZ to A (high) (sf) from A (sf)
-- Class C to A (high) (sf) from A (sf)

In addition, DBRS has confirmed the remaining classes as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3FL at AAA (sf)
-- Class A-3FX at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-M at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (sf)

DBRS has assigned a Positive trend to Class D; all other trends are Stable. The Class PEZ certificates are exchangeable for the Classes A-M, B and C certificates (and vice versa).

These rating actions reflect the overall stable performance of the transaction with loans in the Top 15, representing approximately 80.0% of the pool balance, generally showing healthy cash flow growth over the DBRS underwritten (UW) figures and stable occupancy trends. At issuance, the pool consisted of 48 loans secured by 80 commercial and multifamily properties. The pool has since experienced a collateral reduction of 3.3% as a result of scheduled amortization with all of the original 48 loans outstanding. The pool also benefits from defeasance collateral as one loan in the Top 15, representing 6.9% of the current pool balance, is fully defeased. Based on YE2015 financials, the pool reported a weighted-average (WA) debt service coverage ratio (DSCR) of 2.33 times (x) and a WA debt yield of 12.8%. Comparatively, the YE2014 WA DSCR and WA debt yield were 2.24x and 11.2%, respectively. At issuance, the WA DBRS UW DSCR and debt yield figures were 1.99x and 10.4%, respectively.

As of the December 2016 remittance, there are five loans, representing 3.8% of the current pool balance, on the servicer’s watchlist. All of these loans showed a coverage ratio above 1.0x as of the most recent full-year reporting (YE2015) available. For additional information on these loans, please see the servicer’s reported data and, for the larger and/or pivotal loans on the watchlist, DBRS commentary on the DBRS IReports platform at www.ireports.dbrs.com.

At issuance, DBRS shadow-rated one loan investment grade: Prospectus ID #1 Federal Center Plaza, representing 9.0% of the current pool balance. DBRS’s review confirms that the performance of these loans remains consistent with investment-grade loan characteristics.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans and for the specially serviced loan as well as for the largest 15 loans in the pool in the DBRS CMBS IReports platform. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance of this transaction, please log into DBRS CMBS IReports at www.ireports.dbrs.com.

The ratings assigned to Classes D, E and F materially deviate from the higher ratings implied by the quantitative model. DBRS considers a material deviation to be a rating differential of three or more notches between the assigned rating and the rating implied by the quantitative model that is a substantial component of a rating methodology; in this case, the assigned ratings reflect the sustainability of loan performance trends not demonstrated.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

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

The applicable methodologies are North American CMBS Rating Methodology (March 2016) and CMBS North American Surveillance (December 2016), which can be found on our website under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.