DBRS Confirms Ratings on COMM 2013-CCRE8 Mortgage Trust

DBRS Limited (DBRS) has today confirmed the following classes of COMM 2013-CCRE8 Mortgage Trust:

-- 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-SBFL at AAA (sf)
-- Class A-SBFX at AAA (sf)
-- Class A-M at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (high) (sf)
-- Class D at BBB (sf)
-- Class E at BB (high) (sf)
-- Class F at B (high) (sf)
-- Class X-A at AAA (sf)
-- Class X-B 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-SBFX certificates are exchangeable with the Class A-SBFL certificates and vice versa.

The rating confirmations reflect the overall stable performance of the transaction. At issuance, the pool consisted of 59 fixed-rate loans secured by 94 commercial properties. As of the January 2017 remittance, there has been collateral reduction of 3.9% since issuance with all of the original 59 loans outstanding. The current outstanding trust balance is $1.330 billion. The top 15 loans reported a weighted-average (WA) YE2015 debt service coverage ratio (DSCR) of 1.90 times (x), representative of a WA improvement over the DBRS original analyzed figures of 16.0% and a WA debt yield of 8.5%. The top 15 loans reported a WA 1.1% improvement in YE2015 net cash flow compared with YE2014 figures. According to partial-year 2016 reporting, positive cash flow trends are continuing. Since issuance, five loans representing 8.2% of the pool balance, including two loans in the top 15, have fully defeased.

As of the January 2017 remittance, there were three loans in special servicing, representing 1.6% of the pool balance, and three loans on the servicer’s watchlist, representing 3.4% of the pool balance. Two of the specially serviced loans are expected to be resolved in the near future, which are expected to cause realized losses to the trust. The losses are expected to be contained to the unrated bond, Class G. The third loan recently transferred for delinquency. One of the three watchlisted loans is secured by a hotel property, which reported a performance decline below the 1.10x DSCR threshold, but has since seen an improvement in performance. For additional information on these loans and the remaining watchlisted loans, please see the servicer’s reported data and DBRS commentary on the DBRS IReports platform at www.ireports.dbrs.com.

At issuance, DBRS shadow-rated the 375 Park Avenue (Prospectus ID#1, 15.7% of the pool balance) loan and The Paramount Building loan (Prospectus ID#6, 4.1% of the pool balance) as investment grade. DBRS has today confirmed 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 and specially serviced loans 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 for this transaction, please log into DBRS CMBS IReports at www.ireports.dbrs.com.

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 principal methodologies are North American CMBS Rating Methodology (January 2017) and CMBS North American Surveillance (December 2016), which can be found on dbrs.com under Methodologies.

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