DBRS Morningstar Confirms All Classes of COMM 2013-CCRE10 Mortgage Trust

DBRS Limited (DBRS Morningstar) confirmed all classes of Commercial Mortgage Pass-Through Certificates, Series 2013-CCRE10 (the Certificates) issued by COMM 2013-CCRE10 Mortgage Trust as follows:

-- Class A-3 at AAA (sf)
-- Class A-3FL at AAA (sf)
-- Class A-3FX at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-M at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (high) (sf)
-- Class PEZ at A (high) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (sf)

The Class PEZ certificates are exchangeable for the Class A-M, Class B, and Class C certificates (and vice versa). All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has had a collateral reduction of 20.5% since issuance, with 48 of the original 59 loans remaining in the pool as of the February 2020 remittance report. Eleven loans, including three loans in the top 15, are fully defeased, representing 18.7% of the pool.

Loans representing 76.6% of the pool reported YE2019 and YE2018 financials, with a weighted-average (WA) debt service coverage ratio (DSCR) and debt yield of 2.03 times (x) and 13.1%, respectively. The largest 15 loans reported either partial-year or YE2019 financials, with a WA DSCR and debt yield of 2.29x and 13.9%, respectively, representing a WA cash flow improvement of 33.8% over the DBRS Morningstar net cash flow figures derived at issuance.

As of the February 2020 remittance, eight loans, representing 15.9% of the pool, are on the servicer’s watchlist and no loans are in special servicing. At issuance, DBRS Morningstar assigned investment grade shadow ratings to two loans, including the largest loan in the pool, One Wilshire (Prospectus ID#1, 12.5% of the pool) and Raytheon & DirecTV Buildings, (Prospectus ID#4, 6.0% of the pool), the latter of which is fully defeased. With this review, DBRS Morningstar has confirmed that the performance of One Wilshire remains consistent with investment-grade loan characteristics.

Class X-A is an interest-only (IO) certificate that references a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.

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

DBRS Morningstar provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- Prospectus ID#6 – Prince Kuhio Plaza (4.9% of the pool)
-- Prospectus ID#8 – General Motors Innovation Center (3.9% of the pool)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com. The platform includes issuer and servicer data for most outstanding CMBS transactions (including non-DBRS Morningstar rated), as well as loan-level and transaction-level commentary for most DBRS Morningstar-rated and -monitored transactions.

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

The principal methodology is North American CMBS Surveillance Methodology, which can be found on www.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 Morningstar Global Structured Finance Related Methodologies document, which can be found on www.dbrs.com in the Commentary tab under Regulatory Affairs. 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.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

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 Morningstar 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. Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The DBRS Morningstar long-term rating scale definition indicates that ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.

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

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