News Column

Kroll Bond Rating Agency Affirms COMM 2013-CCRE10

July 22, 2014

NEW YORK--(BUSINESS WIRE)-- KBRA has affirmed all of its outstanding ratings for COMM 2013-CCRE10, a $1.0 billion CMBS conduit transaction collateralized by 59 fixed-rate commercial mortgage loans secured by 87 properties. Although the transaction’s credit profile has weakened somewhat since our last review, the magnitude of the credit degradation was not significant enough to prompt negative rating adjustments. KBRA determined a weighted average (WA) KBRA Loan to Value (KLTV) of 96.6%, which has increased from 96.5% at securitization. KBRA Debt Service Coverage (KDSC) of 1.72x has increased slightly from 1.71x at issuance. The top 10 loans, which comprise 48.5% of the pool, have posted stable performance and all were assigned a KBRA Performance Outlook (KPO) of Perform.

The review included an examination of the CREFC Investor Reporting Package files and other information provided by the master servicer. As of the March 2014 pay-date, there is one delinquent loan that is in special servicing. The loan, Strata Estate Suites (2.2% of the pool), was identified as a KBRA Loan of Concern (K-LOC) and we estimated that its ultimate resolution could result in a loss severity of 17.3% of its outstanding principal balance. Additional details surrounding the loan are contained in the COMM 2013-CCRE10 surveillance report.

The review utilized property financial information obtained from the master servicer, Wells Fargo Bank, National Association. Much of the updated financial data was from December 2013 (44.6%, 22 loans) and March 2014 (31.7%, 20 loans). The remaining data was from June 2013 (2.4%, one loan). KBRA generally utilized 12 months of financial information to determine KNCF. KBRA annualized financial information for loans with partial year financial data in certain instances where 12 months of financial data was not available. Once KNCF was determined, we conducted our credit modeling using the KBRA Multi-Borrower Model. The modeling produced credit enhancement levels that were compared to the transaction's capital structure, which resulted in the affirmation of all of the transaction's outstanding ratings. For complete details on our analysis, please refer to the surveillance report, as well as links to the publications below.

             

 Class 

  Rating  

 Balance (USD) 

  Rating Action
A-1   AAA (sf)   57,826,870   Affirmed
A-2   AAA (sf)   100,105,000   Affirmed
A-3   AAA (sf)   140,000,000   Affirmed
A-3FL   AAA (sf)   40,000,000   Affirmed
A-4   AAA (sf)   278,534,000   Affirmed
A-SB   AAA (sf)   81,070,000   Affirmed
X-A¹   AAA (sf)   797,311,870   Affirmed
A-M   AAA (sf)   99,776,000   Affirmed
B   AA- (sf)   59,362,000   Affirmed
PEZ²   A- (sf)   190,712,000   Affirmed
C   A- (sf)   31,574,000   Affirmed
D   BBB- (sf)   45,469,000   Affirmed
E   BB (Sf)   17,682,000   Affirmed
F   B (sf)   15,155,000   Affirmed

¹ Notional Class

² Exchange Tradable Class

     


17g-7 Disclosure:

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found at http://www.krollbondratings.com/regulatory/17g-7.

Related Publications:

  • COMM 2013-CCRE10 Surveillance Report
  • COMM 2013 Pre-Sale Report
  • CMBS Property Evaluation Guidelines
  • U.S. CMBS Multi-Borrower Rating Methodology

    About Kroll Bond Rating Agency:

    KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).



    KBRA

    Gretel Braverman, 215-882-5843

    gbraverman@kbra.com

    or

    Sarah Woo, 646-731-2361

    swoo@kbra.com

    or

    Michael Haas, 215-882-5859

    mhaas@kbra.com

    or

    Troy Doll, 646-731-2336

    tdoll@kbra.com

    Source: Kroll Bond Rating Agency


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