Fitch Affirms JPMCC 2013-C16

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed 14 classes of J.P. Morgan Chase Commercial Mortgage Securities Trust (JPMCC) commercial mortgage pass-through certificates series 2013-C16. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect the overall stable performance of the pool. The pool has had no delinquent or specially serviced loans. Eight loans appear on the servicer watchlist (11.2% of the pool) for decreases in the debt service coverage ratio (DSCR), lease rollover risk or maintenance issues; however, none of the loans are Fitch Loans of Concern. There is a notable multi-family exposure within the transaction; 29.9% of the pool is secured by multi-family properties, including the two largest loans.

As of the September 2015 distribution date, the pool's aggregate principal balance has been reduced by 1.4% to $1.12 billion from $1.14 billion at issuance. No loans are defeased.

The largest loan in the pool (12.1%) is secured by The Aire located on the upper west side of Manhattan. The property is a 310-unit, 42-story luxury residential building constructed in 2010 that features numerous amenities and high-end finishes. Lincoln Center and The Julliard School are located across the street from The Aire, and Central Park, Riverside Park and The Shops at Columbus Circle are within walking distance. The loan is subject to a $90 million pari passu note which is part of the JPMCC 2013-C17 transaction. The collateral is performing in line with underwritten expectations with occupancy of 93% (as of June 2015) and a year-end (YE) 2014 DSCR of 1.25x, compared to the 92% occupancy and 1.16x DSCR at issuance.

The next largest loan (7.0%) is secured by the Veritas Multifamily Portfolio, a 45-property portfolio of multifamily properties in San Francisco, CA. The portfolio contains 1,230 residential apartments and 22 commercial units across eight San Francisco neighborhoods. The loan has a pari passu A-note for total debt outstanding on the portfolio of $211.5 million. The collateral is performing in line with underwritten expectations with occupancy of 90% (as of YE 2014) and a 1.50x DSCR.

The third largest loan (5.7%) is secured by Energy Center, a 39-story, 757,275-square foot office tower located in New Orleans, LA. Developed in 1984 and renovated in 2003 and 2009, the property is located within walking distance of all of downtown New Orleans and has convenient access to the city's federal buildings and courthouses. As of YE 2014, occupancy was reported to be 88% and the DSCR was 2.47x, which is an increase from 1.94x at issuance.

RATING SENSITIVITIES

Rating Outlooks on classes A-1 through F remain Stable due to overall stable collateral performance. No rating changes are expected in the next few years unless there is a material deterioration in occupancy or cash flow at any of the properties.

DUE DILIGENCE USAGE

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

Fitch affirms the following classes:

--$41.2 million class A-1 at 'AAAsf'; Outlook Stable;

--$236.6 million class A-2 at 'AAAsf'; Outlook Stable;

--$145 million class A-3 at 'AAAsf'; Outlook Stable;

--$276.2 million class A-4 at 'AAAsf'; Outlook Stable;

--$80.5 million class A-SB at 'AAAsf'; Outlook Stable;

--$863.3 million class X-A at 'AAAsf'; Outlook Stable;

--$73.8 million class X-B at 'AA-sf'; Outlook Stable;

--$83.8 million class A-S at 'AAAsf'; Outlook Stable;

--$73.8 million class B at 'AA-sf'; Outlook Stable;

--$41.2 million class C at 'A-sf'; Outlook Stable;

--$0 class EC* at 'A-sf'; Outlook Stable;

--$56.8 million class D at 'BBB-sf'; Outlook Stable;

--$21.3 million class E at 'BBsf'; Outlook Stable;

--$11.4 million class F at 'Bsf'; Outlook Stable.

* Class A-S, class B and class C certificates may be exchanged for a related amount of class EC certificates, and class EC certificates may be exchanged for class A-S, class B and class C certificates.

Fitch does not rate the class NR certificates or the interest only class X-C.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Related Research

J.P. Morgan Chase Commercial Mortgage Securities Trust 2013-C16 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=739737

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=992291

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=992291

Endorsement Policy

https://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/20151014006490/en/

Fitch Ratings
Primary Analyst
Daniel Anderson
Associate Director
+1-312-606-2305
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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