Morningstar DBRS Confirms Credit Ratings on All Classes of JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16

DBRS Limited (Morningstar DBRS) confirmed the credit ratings on all classes of Commercial Mortgage Pass-Through Certificates, Series 2013-C16 issued by JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16 as follows:

-- Class D at CCC (sf)
-- Class E at CCC (sf)
-- Class F at C (sf)
-- Class X-C at C (sf)

There are no trends as all classes have been assigned credit ratings that do not typically carry a trend in commercial mortgage-backed securities (CMBS) credit ratings

The credit rating confirmations reflect the overall risk profile of the transaction and Morningstar DBRS' ongoing concerns about the four remaining loans in the pool, all of which are collateralized by office properties located in four distinct markets. Three of the four loans, representing 53.7% of the pool, are currently specially serviced. Given the concentration of defaulted loans, Morningstar DBRS considered a liquidation scenario for all four remaining loans. The liquidation scenarios were based on value stresses, with haircuts ranging from 20% to 25% applied to the most recent appraised values. Morningstar DBRS considered multiple factors when determining the level of stress, including the property type, age, submarket conditions, historical performance, and upcoming rollover.

While Morningstar DBRS expects the principal balance of the now-senior Classes D and E is likely recoverable based on the analyzed liquidation scenarios, the workout and disposition timelines are uncertain, and Morningstar DBRS expects interest shortfalls will continue to accrue through the workout periods. As of the August 2025 remittance, the cumulative unpaid interest on the certificates totaled approximately $4.6 million, up from $3.4 million at the last credit rating action in September 2024. At the time of the last review, Class D, which had been accruing interest shortfalls since February 2024, had exceeded Morningstar DBRS' tolerance for unpaid interest to the BB (sf) and B (sf) credit rating categories, which is limited to six remittance periods. As a result, those classes were downgraded to CCC (sf). With the execution of the loan modification for the largest loan in the pool, Energy Center (Prospectus ID#3; 46.3% of the current pool), all accumulated interest shortfalls for Class D were repaid with the March 2025 remittance. However, Morningstar DBRS remains concerned about the refinance prospects for the loan given the challenged landscape for office properties and the likelihood of an extended timeline for the loan's ultimate resolution.

The largest loan in special servicing is the 1615 L Street loan (Prospectus ID#11; 30.4% of the current pool balance), which is secured by a Class A office property in downtown Washington, D.C. The loan transferred to the special servicer in August 2023 for imminent monetary default and the special servicer is now pursuing foreclosure. As per the servicer's latest commentary, the property was 42.0% occupied as of May 2025, and occupancy has been consistently declining year over year compared with the issuance rate of 89%. As per the servicer's site inspection report completed in April 2025, two of the top five largest tenants, Independent Community Bankers (occupying 9.2% of the net rentable area (NRA)) and Carr Properties (occupying 4.2% of the NRA), have upcoming scheduled lease expiry dates in the next 12 months, which is likely to further exacerbate the occupancy rate. However, the servicer has noted that draft lease agreements are in progress for two new tenants, the details of which were requested by Morningstar DBRS but not provided as of the publication of this commentary. As per Reis, office properties in the Downtown Washington submarket reported an average vacancy rate of 16.4% in Q2 2025, which increased from the Q1 2025 figure of 14.8%. The property was reappraised in December 2024 at $65.0 million, representing a 69.5% decline from the issuance figure of $213.0 million. Morningstar DBRS applied a 25% haircut to the most recent valuation in the analyzed liquidation scenario to account for the softening submarket fundamentals, upcoming rollover risk, and expectation that investor demand will be low. The resulting liquidated loss amount totaled approximately $25.0 million, with a loss severity of 72%.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (May 16, 2025) at https://dbrs.morningstar.com/research/454196.

Class X-C 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 credit ratings are subject to surveillance, which could result in credit ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by Morningstar DBRS.

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

The principal methodology is North American CMBS Surveillance Methodology (February 28, 2025), https://dbrs.morningstar.com/research/448963

Other methodologies referenced in this transaction are listed at the end of this press release.

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@morningstar.com.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

Please see the 17g-7 disclosure report and/or the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.

As applicable, the conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS' outlooks and credit ratings are monitored.

DBRS Limited
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Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

North American CMBS Multi-Borrower Rating Methodology (April 9, 2025)/North American CMBS Insight Model v 1.3.0.0, https://dbrs.morningstar.com/research/451739

North American Commercial Mortgage Servicer Rankings (August 23, 2024), https://dbrs.morningstar.com/research/438283

Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024), https://dbrs.morningstar.com/research/439702

Legal Criteria for U.S. Structured Finance (December 3, 2024), https://dbrs.morningstar.com/research/444064

A description of how Morningstar DBRS analyzes structured finance transactions and how the methodologies are collectively applied can be found at (July 17, 2024), https://dbrs.morningstar.com/research/417279.

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