DBRS Upgrades One Class and Discontinues Seven Classes of Canadian Commercial Mortgage Origination Trust 2013-2

DBRS Limited (DBRS) upgraded the rating of the following class of Commercial Mortgage Pass-Through Certificates, Series 2013-2 (the Certificates) issued by Canadian Commercial Mortgage Origination Trust 2013-2:

-- Class G to AA (low) (sf) from B (sf)

The trend is Stable.

In addition, DBRS discontinued the ratings on Classes A, B, C, D, E and F, as those classes were repaid with the November 2018 remittance. In addition, DBRS has withdrawn the rating on Class X, as the transaction is winding down and is expected to be repaid in the near term.

The rating upgrade reflects the overall credit support to the bond as a result of significant collateral reduction due to successful loan repayment. At issuance, the transaction consisted of 42 loans secured by 49 properties with an issuance trust balance of $394.0 million. All loans in the pool were structured with five-year terms and are scheduled to mature in 2017 and 2018. As of the November 2018 remittance, three loans remain in the trust with an outstanding aggregate balance of $11.0 million, representing a collateral reduction of 97.2%. The remaining three loans are scheduled to mature in December 2018, coinciding with the expected payout of the trust.

The servicer has confirmed all three loans are expected to repay with the December remittance, as replacement financing has been confirmed to be in place. Two of the three remaining loans are reporting year-end (YE) 2017 financials and the third loan is reporting YE2016 financials. Based on most recent financials, these loans are reporting a weighted-average debt-service coverage ratio of 1.60 times (x).

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

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology is North American CMBS Surveillance, which can be found on dbrs.com under Methodologies & Criteria. 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.

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.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

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