DBRS Confirms All Classes of Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7

DBRS Limited (DBRS) confirmed all classes of Commercial Mortgage Pass-Through Certificates, Series 2013-C7 issued by Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7 as follows:

-- 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 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 BB (high) (sf)
-- Class F at BB (sf)
-- Class G at B (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction since issuance. As of the December 2017 remittance, 56 of the original 64 loans remained in the pool with an aggregate principal balance of $1.12 billion, representing a collateral reduction of 19.5% since issuance as a result of scheduled loan amortization and successful loan repayments. One loan, Oakridge Office Park (Prospectus ID#25; approximately 1.3% of the outstanding pool balance at disposition), has been liquidated from the pool since issuance. The loan was disposed in January 2017 at a loss of $2.8 million (loss severity of 17.8%), all of which was contained to the unrated Class H certificate.

Of the remaining loans, 54 are reporting YE2016 financials; based on these figures, the pool reported a weighted-average debt service coverage ratio and in-place debt yield of 1.84 times and 10.8%, respectively. Both performance metrics are in line with the figures reported for YE2015.

As of the December 2017 remittance, there were three loans on the servicer’s watchlist representing 4.4% of the pool and no loans in special servicing. Two of the loans on the watchlist are being monitored for cash flow declines, and the third loan is on the watchlist for the borrower’s failure to comply with a lockbox activation triggered by an upcoming rollover for a significant tenant. For additional information on the watchlisted loans, please see the DBRS loan commentary in the DBRS Viewpoint platform (see below for further information on the site).

Classes X-A and X-B are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated reference tranche adjusted upward by one notch if senior in the waterfall.

All ratings will be subject to ongoing surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans in the transaction, as well as for the top 15 loans, in the DBRS Viewpoint platform. Registration and content are 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 DBRS Viewpoint at viewpoint.dbrs.com.

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

The principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. Please note that not every related methodology listed under a principal Structured Finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

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 under Related Documents or by contacting us at info@dbrs.com.

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

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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