Fitch Ratings has upgraded and assigned Stable Outlooks to seven classes of COMM 2013-
RATING ACTIONS
Entity / Debt
Rating
Prior
COMM 2013-
A-2 12624UAC8
LT
AAAsf
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AAsf
B 12624UAJ3
LT
AA-sf
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Asf
C 12624UAL8
LT
Asf
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BBBsf
D 12624UAN4
LT
BBBsf
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BBsf
E 12624UAQ7
LT
BBB-sf
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BB-sf
F 12624UAS3
LT
BB-sf
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B-sf
X-A 12624UAE4
LT
AAAsf
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AAsf
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VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Improved Performance; Cash Flow, Occupancy and Sales: The upgrades and Stable Outlooks are the result of post-pandemic performance improvement and greater clarity on the sponsor's longer-term business plan that is expected to increase the refinanceability of the loan. Since the prior rating action, Fitch's net cash flow (NCF) has improved to expectations at issuance, sales now exceed issuance levels, the loan has continued to amortize and the sponsor has successfully leased or renewed two of the three anchor spaces:
Total mall physical occupancy has improved to 79.2% (including
Post-pandemic sales at the property have rebounded to above issuance levels. Comparable in- line sales were $727psf as of TTM
Maturity Date Extension: The loan transferred to special servicing in
Amortization: As of the
Fitch Leverage: The Fitch debt service coverage ratio (DSCR) and loan to value (LTV) for the asset is 1.08x and 83.7%, respectively. The Fitch debt yield is 11.3%.
Single Asset Concentration:
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Downgrades to all classes would occur with declines in occupancy, cash flow and sales, and/or a default at the upcoming maturity in
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Upgrades are not expected; however, factors that lead to upgrades would include significantly improved asset performance.
Best/Worst Case Rating Scenario
International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg
Additional information is available on www.fitchratings.com
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