Fitch Affirms MSBAM 2013-C10

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed 18 classes of Morgan Stanley Bank of America Merrill Lynch Trust (MSBAM) commercial mortgage pass-through certificates series 2013-C10. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations reflect overall stable performance of the pool. Fitch has not designated any loans as Fitch Loans of Concern, and no loans are in special servicing. There is a notable hotel exposure within the transaction; 16.5% of the pool is secured by hotel properties, including three of the top 15 loans.

As of the April 2016 distribution date, the pool's aggregate principal balance has been reduced by 4.3% to $1.42 billion from $1.49 billion at issuance. No loans are defeased. Interest shortfalls are currently affecting class J.

The largest loan (9.8% of the pool) is secured by a 1.1 million square foot (sf) (506,914-sf collateral) regional mall located in Tampa, FL. The collateral is approximately 97% occupied as of year-end (YE) 2015 and includes a 20-screen Regal Cinemas Theater, several junior anchor spaces, and 287,872 sf of in-line space. The property, built in 1999, completed a $10 million renovation in 2007 that included the addition of a Dick's Sporting Goods. The servicer reported debt service coverage ratio (DSCR) was 1.96x as of YE 2015 compared to 1.69x at issuance.

The next largest loan (7.7% of the pool) is secured by the leased fee interest in a 19,862 sf parcel of land below a full-service hotel in Manhattan. The property is subject to a net lease, which is supported by hotel operations, and has a term of 99 years. The recently renovated, 1,331-key hotel spans an entire city block and is located in the theater district, one block west of Times Square. The servicer reported DSCR as of June 2015 was 1.69x.

The third largest loan (7.4% of the pool) is secured by a nine-story 232,521-sf office property located in Washington, D.C. Built in 1965, the property underwent a complete renovation and re-tenanting and is now leased to six tenants. The property is located in the Capital Hill submarket and has close proximity to Union Station and the U.S. Capital Building. Occupancy as of YE 2015 was reported to be 93%. The DSCR at YE 2015 was reported to be 2.30x compared to 2.08x at issuance.

RATING SENSITIVITIES

Rating Outlooks on classes A-1 through H remain Stable due to overall stable collateral performance. Fitch does not foresee positive or negative ratings migration unless a material economic or asset level event changes the underlying transaction's portfolio-level metrics.

DUE DILIGENCE USAGE

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

Fitch affirms the following classes:

--$30.7 million class A-1 at 'AAAsf'; Outlook Stable;

--$34.2 million class A-2 at 'AAAsf'; Outlook Stable;

--$126.5 million class A-SB at 'AAAsf'; Outlook Stable;

--$200 million class A-3 at 'AAAsf'; Outlook Stable;

--$125 million class A-3FL at 'AAAsf'; Outlook Stable;

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

--$516.4 million class X-A at 'AAAsf'; Outlook Stable;

--$359.5 million class A-4 at 'AAAsf'; Outlook Stable;

--$100 million class A-5 at 'AAAsf'; Outlook Stable;

--$111.4 million class A-S* at 'AAAsf'; Outlook Stable;

--$100.3 million class B* at 'AA-sf'; Outlook Stable;

--$52 million class C* at 'A-sf'; Outlook Stable;

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

--$53.9 million class D at 'BBB-sf'; Outlook Stable;

--$22.3 million class E at 'BBB-sf'; Outlook Stable;

--$16.7 million class F at 'BB+sf'; Outlook Stable;

--$20.4 million class G at 'BB-sf'; Outlook Stable;

--$16.7 million class H at 'Bsf'; Outlook Stable.

*Classes A-S, B, and C certificates may be exchanged for class PST certificates, and class PST certificates may be exchanged for classes A-S, B, and C certificates.

Fitch does not rate the class J certificates.

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

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

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Related Research

Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C10 -- Appendixhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=712794

Additional Disclosures

Dodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1003434

Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1003434

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/20160427006732/en/

Fitch Ratings
Primary Analyst:
Daniel Anderson, +1-312-606-2305
Associate Director
Fitch Ratings, Inc.
70 West Madison St.
Chicago, IL 60602
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Alyssa Castelli, +1-212-908-0540
New York
[email protected]
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526
New York
[email protected]

Source: Fitch Ratings

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