Fitch Affirms COMM 2013-THL; Outlook on Five Classes Revised to Positive

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed eight classes of COMM 2013-THL Mortgage Trust Commercial Mortgage Pass-Through Certificates, Series 2013-THL. A detailed list of rating actions follows at the end of this release.

The certificates in this transaction represent the beneficial interests in a trust that holds a $734.4 million mortgage loan secured by 148 hotel properties located in 31 states across the U.S. The loan is sponsored by Whitehall Street Global Real Estate Limited Partnership 2005 and Whitehall Street Global Employee Fund 2005.

KEY RATING DRIVERS

The affirmations and Positive Outlooks are based on the continued stable-to-increased performance of the underlying collateral pool since issuance. The servicer-reported portfolio net cash flow (NCF) has increased 2.5% as of year-end (YE) 2015 compared with the YE 2014. As of YE 2015, the hotel portfolio's trailing 12-month (TTM) occupancy and revenue per available room (RevPAR) were 71.4% and $78.55, respectively. The issuer's underwritten occupancy and RevPAR was 69.6% and $71.98.

The portfolio exhibits significant geographic diversity across secondary markets in 31 states. The largest state exposure is California with 22 hotels. The collateral consists of mainly limited service or extended stay properties, with the largest flags consisting of Fairfield Inn, Residence Inn, Hampton Inn and Courtyard. The majority of the pool is in secondary and tertiary markets, including some exposure to areas affected by volatility in energy prices. The loan was not refinanced at its three-year maturity date and the sponsor has exercised the first of its two one-year extensions.

RATING SENSITIVITIES

The Rating Outlook for classes C, D, E and F and interest-only X-EXT are revised to Positive as upgrades are possible if portfolio level cash flow continues to remain strong or increases. Downgrades are unlikely unless the portfolio sees a significant decline in performance and/or is not able to pay off at its final maturity date.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following ratings:

--$36.9 million class A-1 at 'AAAsf'; Outlook Stable;

--$280.3 million class A-2 at 'AAAsf'; Outlook Stable;

--Interest-only class X-EXT at 'BBB-sf'; Outlook to Positive from Stable;

--$108.1 million class B at 'AAsf'; Outlook Stable;

--$79 million class C at 'A-sf'; Outlook to Positive from Stable;

--$78.4 million class D at 'BBB-sf; Outlook to Positive from Stable;

--$122.5 million class E at 'BB-sf'; Outlook to Positive from Stable;

--$29 million class F at 'Bsf'; Outlook to Positive from Stable.

Class X-CP is paid in full.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (pub. 27 Aug 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870009

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 28 May 2014)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748781

Exposure Draft: Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 Apr 2016)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=878412

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Related Research

COMM 2013-THL Mortgage Trust - Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=714176

Additional Disclosures

Dodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1005200

Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1005200

Endorsement Policyhttps://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160526006410/en/

Fitch Ratings
Primary Analyst:
Jeffrey Diliberto, +1-312-368-3268
Director
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
New York
[email protected]

Source: Fitch Ratings

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