DBRS Confirms Ratings of FREMF 2013-K29 Mortgage Trust, Series 2013-K29, Stable Trends

DBRS Limited (DBRS) has today confirmed the ratings on all classes of Multifamily Mortgage Pass-Through Certificates, Series 2013-K29 issued by FREMF 2013-K29 Mortgage Trust, Series 2013-K29 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class X1 at AAA (sf)
-- Class X2-A at AAA (sf)
-- Class B at A (high) (sf)
-- Class C at BBB (high) (sf)

All trends are Stable. DBRS does not rate the first loss piece, Class D.

The rating confirmations reflect the continued overall stable performance exhibited by the transaction. The collateral consists of 87 fixed-rate loans secured by 87 multifamily properties. As of the March 2017 remittance, all 87 loans remain in the pool and have an aggregate balance of approximately $1.58 billion, representing a collateral reduction of 3.7% as a result of scheduled loan amortization. Seven loans, representing 5.4% of the pool, are secured by defeasance collateral.

At issuance, the transaction had a DBRS weighted-average (WA) debt service coverage ratio (DSCR) and a DBRS WA debt yield of 1.50 times (x) and 8.1%, respectively. As of the March 2017 remittance, 37 loans (50.0% of the pool) reported YE2016 cash flows, 41 loans (42.1% of the pool) reported partial-year 2016 cash flows (all being Q3 2016) and two loans (2.5% of the pool) reported YE2015 cash flows. Based on the most recent financials (excluding defeasance collateral), the transaction had a WA DSCR and debt yield of 1.75x and 9.6% compared with 1.69x and 8.1% at YE2015, respectively. Based on the most recent financials, the top 15 loans reported a WA DSCR of 1.64x compared with 1.55x as at YE2015, reflecting WA net cash flow growth of 6.2%.

As of the March 2017 remittance, there are four loans (2.2% of the pool) on the servicer’s watchlist. Three of these loans (1.7% of the pool) were flagged as a result of deferred maintenance, while the remaining loan (0.5% of the pool) was flagged because of a decline in performance.

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 commercial mortgage-backed securities (CMBS) IReports platform. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please log in to DBRS CMBS IReports at www.ireports.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.

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.

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