DBRS Confirms All Classes of COMM 2013-CCRE8 Mortgage Trust

DBRS Limited (DBRS) confirmed all classes of COMM 2013-CCRE8 Mortgage Trust, as follows:

-- 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 X-A at AAA (sf)
-- Class X-B at AA (high) (sf)
-- Class B at AA (sf)
-- Class C at A (high) (sf)
-- Class D at BBB (sf)
-- Class E at BB (high) (sf)
-- Class X-C at BB (low) (sf)
-- Class F at B (high) (sf)

All trends are Stable.

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 2018 remittance, the pool has had a collateral reduction of 5.4% since issuance due to scheduled loan amortization, with a current outstanding trust balance of $1,310.5 million. As of the January 2018 remittance, five loans, representing 8.1% of the current pool balance, are fully defeased. At issuance, twelve loans, representing 35.6% of the pool balance, were structured with partial-term interest-only (IO) payments; as of the January 2018 remittance, all but one of those loans are now amortizing. Three loans were structured with full-term IO payments, including the largest and sixth largest loan, which reported a weighted-average (WA) YE2016 debt service coverage ratio (DSCR) of 2.51 times (x). There are 49 loans, representing 88.5% of the current pool balance, reporting YE2016 figures and these loans reported a WA DSCR and WA debt yield of 1.90x and 11.5%, respectively. The largest 15 non-defeased loans reported a WA YE2016 DSCR and debt yield of 1.92x and 9.7%, respectively, representing a WA 11.4% improvement in cash flows year over year.

As of the January 2018 remittance, there are three loans, representing 1.8% of the pool balance, in special servicing and three loans, representing 2.2% of the pool balance, on the servicer’s watchlist for occupancy-related issues. For additional information on DBRS’s perspective on these loans, please see the loan commentary on the DBRS Viewpoint platform, for which information is listed below.

At issuance, DBRS shadow-rated the 375 Park Avenue loan (Prospectus ID#1, 15.9% of the current pool balance) and the Paramount Building loan (Prospectus ID#6, 4.2% of the current pool balance) investment grade. With this review, DBRS confirms that the performance of these loans remains consistent with investment-grade loan characteristics.

Classes X-A, X-B and X-C are 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.

As part of this review, DBRS has provided updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- 375 Park Avenue
-- The Paramount Building
-- Carlsbad Airport Corporate Center
-- 11000 Equity Drive
-- Georgetown MHC Portfolio
-- DoubleTree Pittsburgh Airport
-- Microtel Inn & Suites San Angelo

For complimentary access to this content, please register for the DBRS Viewpoint platform at viewpoint.dbrs.com. The platform includes issuer and servicer data for the entire CMBS universe, as well as deal and loan-level commentary for all DBRS-rated transactions.

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.