DBRS Morningstar Confirms All Classes of COMM 2013-CCRE11 Mortgage Trust

DBRS, Inc. (DBRS Morningstar) confirmed the following classes of Commercial Mortgage Pass-Through Certificates, Series 2013-CCRE11 (the Certificates) issued by COMM 2013-CCRE11 Mortgage Trust:

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

All trends are Stable.

The rating confirmations reflect the overall performance of the transaction, which has remained in line with DBRS Morningstar’s expectations since issuance. As of the February 2020 remittance, there was a collateral reduction since issuance of 11.8% as a result of scheduled amortization. Eleven loans, representing 23.7% of the current pool balance, are fully defeased, including five loans in the top 15.

Loans representing 75.1% of the current pool balance show a YE2018 analysis in the servicer’s reporting. Those loans reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.79 times (x) and 11.4%, respectively. Loans representing 60.0% of the current pool balance show 2019 partial-year reporting with a WA DSCR of 1.84x.

As of the February 2020 remittance, there were four loans on the servicer’s watchlist, representing 8.9% of the current pool balance, and no loans in special servicing. The largest loan on the servicer’s watchlist, Oglethorpe Mall (Prospectus ID#5, 7.8% of the pool), is secured by a regional mall in Savannah, Georgia, owned and operated by an affiliate of Brookfield Property Partners. That loan is also on the DBRS Morningstar Hotlist and is being monitored for the loss of an anchor tenant in Sears (non-collateral) in 2018. For additional information on that loan, please see the DBRS Viewpoint platform, for which information is provided below.

DBRS Morningstar notes that the largest loan in the pool is the Miracle Mile Shops loan (Prospectus ID#1, 12.7% of the pool), which is a $580 million pari passu whole loan secured by a super-regional mall located in Las Vegas, Nevada, inside the Planet Hollywood Resort & Casino on the Strip. The Coronavirus Disease (COVID-19) outbreak of 2020 has severely affected tourist and business travel around the United States and around the globe. Las Vegas, which has an economy heavily reliant on travelers to the area, has been particularly hard hit. According to a USA Today article dated March 16, 2020, two Wynn Resorts properties and 13 MGM Resorts properties have been closed along the Las Vegas Strip. As of the date of the article, 10 Caesars Entertainment hotel-casinos were still open (including the Planet Hollywood property where the subject is located), but it was noted that all live events at Caesars properties were cancelled through the end of March. The subject property’s website indicated it was open for business as of March 19, 2020, with a note stating some businesses were closed and some restaurants were offering take-out and delivery options only.

As these events continue to unfold, DBRS Morningstar will continue to monitor for developments. The significant loss in tourist and business traveler traffic during some of the most popular months of the year for Las Vegas visitors will likely take a significant toll on sales at the subject for the near to moderate term. The loan reported a YE2019 occupancy rate of 98.0% and a DSCR of 1.39x, suggesting the breathing room for cash flow declines is relatively slim.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Classes X-A, X-B, and X-C are interest-only (IO) certificates that reference 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#1 – Miracle Mile Shops (12.7% of the pool)
-- Prospectus ID#5 – Oglethorpe Mall (7.8% of the pool)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrs.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 the 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.dbrsmorningstar.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.

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 [email protected].

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.

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.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

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.dbrsmorningstar.com or contact us at [email protected].

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