News Column

Fitch Affirms MSBAM 2013-C11

July 16, 2014

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 14 classes of Morgan Stanley Bank of America Merrill Lynch Trust, commercial mortgage pass-through certificates, series 2013-C11 (MSBAM 2013-C11). A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are based upon the stable performance of the underlying collateral pool since issuance. As of the June 2014 remittance report, the pool has experienced no delinquent or specially serviced loans since issuance. The pool's aggregate principal balance has been paid down by 0.8% to $849.8 million from $856.3 million at issuance. Loans representing 80.2% of the pool reported year-end 2013 financial information. For these loans, the net operating income increased by 1.3% from issuance.

The largest loan, Westfield Countryside (11.8% of pool), is secured by 464 836 square feet of a 1.26 million square foot (sf) regional mall located in Clearwater, FL. The mall is anchored by Sears, Macy's, Dillard's, and JC Penney, all of which owned their own parcels. The largest collateral tenant is the Cobb Theatres, which occupies nearly 12% of the collateral square footage. As of the March 2014 rent roll, collateral occupancy was 94% compared to 92% at issuance. In-line sales reported for the 2013 full-year were $404 per square foot (psf) compared to $396 psf reported at issuance as of the trailing-12 month (TTM) period ending May 2013. The year-end (YE) 2013 sales psf figures for three of the anchor tenants, Dillard's, Macy's, and JC Penney, have improved by 1.6%, 3.5%, and 6.6%, respectively, from TTM April 2013. Sears was the only anchor tenant that reported a YE 2013 sales psf decline of nearly 7.8% from TTM April 2013. The Cobb Theatres also reported an improvement of 2.5% in sales per screen for YE 2013 from TTM April 2013.

The second largest loan, The Mall at Tuttle Crossing (11.2%), is secured by 385,057 square feet of a 1.14 million sf regional mall located in Dublin, OH. The mall is anchored by two Macy's stores, JC Penney, and Sears, all of which are not part of the collateral. The largest collateral anchor tenant, The Finish Line, which occupies over 5% of the collateral square footage, recently renewed its lease for an additional 10 years until 2024. In-line sales have remained relatively flat through 2012 and 2013.

The third largest loan, Martix Corporate Center (9.9%), is secured by a 1.04 million sf office property located in Danbury, CT. As of March 2014, the property was 69% occupied, compared to 72% at issuance. The top two tenants at the property occupy 50% of the total property square footage. The largest tenant, Boehringer Ingelheim, occupies 31% and has a lease expiring in December 2022, extending well beyond the loan term, while the second largest tenant, Praxair, occupies 19% and has a lease expiration in December 2016.

RATING SENSITIVITIES

All classes maintain Stable Outlooks. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's portfolio-level metrics.

Additional information on rating sensitivity is available in the report 'Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C11' (April 8, 2014), available at www.fitchratings.com.

Fitch has affirmed the following classes as indicated:

--$46.5 million class A-1 at 'AAAsf', Outlook Stable;

--$142 million class A-2 at 'AAAsf', Outlook Stable;

--$73 million class A-AB at 'AAAsf', Outlook Stable;

--$125 million class A-3 at 'AAAsf', Outlook Stable;

--$206.5 million class A-4 at 'AAAsf', Outlook Stable;

--Interest-only class X-A at 'AAAsf'; Outlook Stable;

--$49.2 million(b) class A-S at 'AAAsf', Outlook Stable;

--$61 million(b) class B at 'AA-sf', Outlook Stable;

--$144.5 million(b) class PST at 'A-sf', Outlook Stable.

--$34.3 million(b) class C at 'A-sf', Outlook Stable;

--$38.5 million(a) class D at 'BBB-sf', Outlook Stable;

--$9.6 million(a) class E at 'BBB-sf', Outlook Stable;

--$8.6 million(a) class F at 'BB+sf', Outlook Stable;

--$20.3 million(a) class G at 'Bsf', Outlook Stable;

(a) Privately placed pursuant to Rule 144A.

(b) Classes A-S, B, and C certificates may be exchanged for class PST certificates, and class PST certificates may be exchanged for class A-S, B, and C certificates.

Fitch does not rate the class H, J, or X-B certificates.

A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:

--'Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C11 -- Appendix' (April 8, 2014).

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance then CMBS then Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2014);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=839934

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Primary Analyst

Melissa Che, +1 212-612-7862

Director

Fitch Ratings, Inc.

33 Whitehall Street

New York, NY 10004

or

Committee Chairperson

Mary MacNeill, +1 212-908-0785

Managing Director

or

Media Relations:

Sandro Scenga, +1 212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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