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

DBRS Limited (DBRS) 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.

The rating confirmations reflect the overall stable performance for the transaction. As of the March 2018 remittance, all 87 of the original loans remained in the pool, with an aggregate principal balance of $1.58 billion, representing a collateral reduction of 5.5% since issuance. There are currently nine loans (8.9% of the pool) that have been fully defeased. There are 34 loans (34.5% of the pool balance) that have reported YE2017 financials, while 44 loans (56.6% of the pool) reported YE2016 financials. Based on the most recent year-end financials available, the pool had a weighted-average (WA) debt service coverage ratio (DSCR) and a WA debt yield of 1.72 times (x) and 9.6%, respectively, compared to the DBRS Term DSCR and DBRS Debt Yield figures derived at issuance of 1.50x and 8.1%, respectively. Based on the same financials, the top 15 loans (44.1% of the pool) reported a WA DSCR of 1.60x, compared with the WA DBRS Term DSCR of 1.42x, representing a WA NCF growth of 16.5% over the DBRS issuance figures.

As of the March 2018 remittance, there are no loans in special servicing and five loans (5.2% of the pool) on the servicer’s watchlist. Based on the most recent financials available (including partial-year 2017 financial reporting), the five loans on the watchlist reported a WA DSCR of 1.54x, compared to the WA DBRS Term DSCR of 1.26x, representing a 22.7% NCF growth over DBRS figures. Only two of the loans (2.2% of the pool) were flagged for performance declines, with the other three loans being monitored for non-credit-related issues. For additional information on the two loans being monitored for cash flow declines, please see the Loan Commentary for both in the DBRS Viewpoint platform, for which information is provided, below.

Classes X1 and X2-A 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.

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:

--Prospectus ID#1 – Crystal Towers
--Prospectus ID#13 – Broadstone Gramercy

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.