DBRS Confirms Ratings on Morgan Stanley Bank of America Merrill Lynch Trust 2013-C9

DBRS Limited (DBRS) has today confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2013-C9 issued by Morgan Stanley Bank of America Merrill Lynch Trust 2013-C9 as follows:

-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-3FL at AAA (sf)
-- Class A-3FX at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-AB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AA (sf)
-- Class X-B at A (high) (sf)
-- Class C at A (sf)
-- Class PST at A (sf)
-- Class D at BBB (sf)
-- Class E at BBB (low) (sf)
-- Class F at BB (high) (sf)
-- Class G at BB (low) (sf)
-- Class H at B (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has remained in line with DBRS’s expectations since issuance. At issuance, this transaction consisted of 60 loans secured by 77 properties for a total trust balance of approximately $1.28 billion. As of the March 2017 remittance report, the trust balance was $1.18 billion, representing collateral reduction of 7.8% resulting from scheduled amortization and loan repayments with 58 of the original 60 loans remaining in the pool.

Loans representing 99.0% of the current pool balance are reporting YE2015 figures with a weighted-average (WA) debt service coverage ratio (DSCR) and a WA debt yield of 2.0 times (x) and 11.5%, respectively. The WA net cash flow growth at YE2015 for the top 15 loans was 19.0% over the DBRS issuance figures with a WA DSCR of 2.01x compared with the WA DBRS issuance DSCR of 1.67x.

As of the March 2017 remittance report, there are three loans, representing 1.3% of the pool, on the servicer’s watchlist. There are no loans in special servicing. Two of the three loans on the watchlist report healthy DSCR figures and are being monitored for upcoming tenant rollover with the servicer reporting that all tenants in question have renewed. The remaining loan on the watchlist is being monitored for reporting a low YE2016 DSCR.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted 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.

The ratings assigned to Classes C and PST materially deviate from the higher ratings implied by the quantitative results. 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 results that is a substantial component of a rating methodology. The deviations are warranted due to 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 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.