DBRS Correction: Citigroup Commercial Mortgage Trust 2013-GC15

DBRS Limited (DBRS) corrected a July 7, 2017, press release that did not include language identifying the material deviations for the rating actions taken on Citigroup Commercial Mortgage Trust 2013-GC15. The press release, with the correct material deviations identified, has been amended on the DBRS website.

On July 7, 2017, DBRS confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2013-GC15 issued by Citigroup Commercial Mortgage Trust 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 X-A at AAA (sf)
-- Class X-C at BB (high) (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)

All trends are Stable.

The rating confirmations reflects the overall stable performance exhibited since issuance in 2013. At issuance, the collateral consisted of 92 fixed-rate loans secured by 129 commercial properties. As of the June 2017 remittance, 90 loans remained in the pool with an aggregate principal balance of $1.06 billion, representing a collateral reduction of 5.1% as a result of loan repayment and scheduled loan amortization. Five loans, representing 4.7% of the pool, are fully defeased.

The pool is concentrated by property type, as 39 loans, representing 35.2% of the pool, are secured by retail properties, 18 loans (25.0% of the pool) are secured by multifamily properties, 12 loans (15.2% of the pool) are secured by office properties, and ten loans (16.4% of the pool) are secured by hotel properties. By loan size, the pool is diverse, as the Top 10 and Top 15 loans only represent 39.5% and 48.5%, respectively. Five loans (22.7% of the pool) are structured with full interest-only (IO) terms, while an additional three loans (10.1% of the pool) have partial IO periods remaining, ranging from 13 months to 15 months.

Excluding defeasance, 81 loans (91.8% of the pool) have reported Q1 2017 partial-year net cash flow (NCF) figures, with five loans (4.7% of the pool) reporting YE2016 NCF figures most recently, and two loans (3.5% of the pool) that show YE2015 NCF figures as the most recently reported. As calculated on the most recent year-end financials available (mostly YE2016), the transaction had a weighted-average (WA) amortizing debt service coverage ratio (DSCR) and WA debt yield of 1.61 times (x) and 10.7%, respectively, compared with the DBRS issuance figures of 1.51x and 9.4%, respectively. Throughout 2018, 14 loans (21.5% of the pool) are scheduled to mature; two of these loans (2.2% of the pool) are fully defeased. Excluding defeasance and calculated on the most recent year-end financials available, the 12 non-defeased loans scheduled to mature in 2018 (19.3% of the pool) had a WA amortizing DSCR, WA DBRS Refi DSCR and exit debt yield of 1.79x, 1.07x and 10.3%, respectively. Based on the most recent NCF figures (both partial-year and YE2016), the Top 15 loans reported a WA amortizing DSCR of 1.79x compared with the DBRS issuance figure of 1.61x, which reflects a WA NCF growth of 12.3%.

As of the June 2017 remittance, there is one loan (0.5% of the pool) in special servicing and 14 loans (9.2% of the pool) on the servicer’s watchlist. The City Center Building loan (Prospectus ID#34) was transferred to special servicing in December 2015 for imminent default, with the servicer’s foreclosure action currently stalled by ongoing litigation initiated by the borrower. Of the 14 loans currently on the servicer’s watchlist, five loans (5.6% of the pool) were flagged for deferred maintenance, while eight loans (2.9% of the pool) were flagged for tenant rollover. Based on the most recent NCF figures (both partial-year and YE2016), these eight loans reported a WA amortizing DSCR of 1.43x compared with the DBRS issuance figure of 1.39x.

The ratings assigned to Classes C, D, E and F 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 given the sustainability of loan performance trends not demonstrated.

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

For more information on these rating actions, please contact us at info@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 the North American CMBS Multi-borrower Rating Methodology (March 2017) and CMBS North American Surveillance (December 2016), which can be found on dbrs.com under Methodologies.