News Column

Fitch Affirms COMM 2013-CCRE9

July 3, 2014

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 13 classes of Deutsche Bank Securities, Inc.'s COMM 2013-CCRE9 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are based on relatively stable performance of the underlying collateral pool since issuance. There have been no delinquent loans since issuance. One loan is in special servicing (0.65%) and another is on the master servicer's watchlist (0.19%). Fitch reviewed the most recently available quarterly financial performance of the pool as well as updated rent rolls for the top 15 loans. Year-end (YE) 2013 financials were available for 53% of the transaction.

As of the June 2014 distribution date, the pool's aggregate principal balance has been reduced by 0.7% to $1.28 billion from $1.29 billion at issuance. No loans are defeased.

The largest loan in the pool (6.1%), The Northridge Mall, is secured by a one million square foot (sf) (587,484 sf collateral) enclosed regional mall located in Salinas, CA. The property was built in 1972 and renovated most recently in 2006. The mall contains four anchor tenants including Macy's and Sears (non-collateral) and JCPenney and Forever 21 (owned collateral). Additional large tenants at the property that are not part of the collateral include Century Theaters, Toys R' Us, and Big 5 Sporting Goods. The mall faces limited direct competition, with the nearest enclosed regional mall located over 60 miles away in San Jose, CA. Occupancy was reported to be 96.4% at YE 2013.

The second largest loan in the pool (5.8%), The Paramount Building, is secured by a 31 story 694,134 sf office and retail property located in the Times Square district of New York, NY. The largest retail tenant is the Hard Rock Cafe (44,970 sf; 6.5% of net rentable area [NRA]) located on the ground floor and the largest office tenant is HQ Global Workplaces (39,854 sf; 5.7% of NRA). The servicer reported debt service coverage ratio (DSCR) was 4.15x as of YE 2013 compared to 4.81x at issuance. Occupancy was reported at 69% as of YE 2013 compared to 70% as of March 2013.

The specially serviced loan is secured by a multifamily property (.65%) located in Buffalo, NY. The loan was transferred to the special servicer in June 2014 due to a non-monetary default. The lender provided notice to the borrower of non-compliance with the loan documents which was not cured within 30 days triggering an event of default. The loan continues to show strong performance with a servicer reported DSCR of 1.75x at YE 2013 compared to 1.70x at issuance. Occupancy was reported to be 98% at YE 2013.

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 'COMM 2013-CCRE9' (July 16, 2014), available at www.fitchratings.com.

Fitch affirms the following classes as indicated:

--$70.4 million class A-1 at 'AAAsf', Outlook Stable;

--$78 million class A-2 at 'AAAsf', Outlook Stable;

--$112.2 million class A-SB at 'AAAsf', Outlook Stable;

--$100 million class A-3 at 'AAAsf', Outlook Stable;

--$100 million class A-3FL at 'AAAsf', Outlook Stable;

--$0 class A-3FX at 'AAAsf', Outlook Stable;

--$436 million class A-4 at 'AAAsf', Outlook Stable;

--$127.8 million class A-M at 'AAAsf', Outlook Stable;

--$80.9 million class B at 'AA-sf', Outlook Stable;

--$45.3 million class C at 'A-sf', Outlook Stable;

--$50.1 million class D at 'BBB-sf', Outlook Stable;

--$27.5 million class E at 'BBsf', Outlook Stable;

--$12.9 million class F at 'Bsf', Outlook Stable;

--$1 billion class X-A at 'AAAsf', Outlook Stable.

Fitch does not rate the class G 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:

--'COMM 2013-CCRE9 -- Appendix' (Jan. 16, 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 >> CMBS >> 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=837915

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

Darren Liss

Director

+1-212-908-0753

Fitch Ratings, Inc.

33 Whitehall Street

New York, NY 10004

or

Committee Chairperson

Mary MacNeill

Managing Director

+1-212-908-0785

or

Media Relations

Sandro Scenga, +1 212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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