Fitch Affirms WFRBS 2013-C18

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has affirmed 14 classes in WFRBS Commercial Mortgage Trust series 2013-C18 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 the stable performance of the underlying collateral pool. As of the October 2015 distribution date, the pool has experienced 1.3% collateral reduction since issuance.

There have been no delinquent or specially serviced loans since the deal closed. There are four loans on the servicer's watchlist, representing 1.6% of the pool combined. The largest watchlist loan is 0.9% of the pool and is secured by a limited-service hotel in Royersford, Pennsylvania. The net operating income (NOI) debt service coverage ratio (DSCR) at the second quarter of 2015 (2Q15) was 1.33x, with a corresponding occupancy rate of 69%.

The largest loan in the pool is Garden State Plaza (14.6% of the pool). The subject is a 2.2 million square foot (sf) super regional mall in Paramus, New Jersey that is anchored by Macy's, Nordstrom, Neiman Marcus, Lord & Taylor and J.C.Penney. The mall was originally built in 1957 and most recently renovated in 2013 at a cost of $159 million. Other major tenants include a 16-screen AMC Loews, Forever 21, Best Buy and H&M. The loan is interest-only for the full term, and is pari-passu with a $150 million note securitized in another CMBS transaction. Historical sales have been strong and the property was 95% occupied as of June 2015.

The second largest loan is secured by a 1.3 million sf outlet mall located 15 miles southwest of New York City. Anchors include Burlington Coat Factory, Forever 21, Cohoes Fashions and a 22-screen Loews Theatres. The loan is interest-only for the full term, and is one of three pari-passu notes with a whole loan balance of $350 million. Glimcher was the original property owner before the company was acquired in 2014. The subject is now exclusively owned and operated by Simon and has been rebranded as The Mills at Jersey Gardens. Sales for year-end (YE) 2014 were reported to be $598 psf, and the property was 95.4% occupied as of June 2015.

The third largest loan, AmericasMart, is secured by a 7.1 million sf wholesale trade market with approximately 4.6 million sf of rentable area in four attached buildings. The property is located in the Atlanta CBD and was originally constructed in 1961. There are over 1,500 permanent tenants occupying 3.5 million sf, and 1.1 million sf of temporary exhibition space can be leased during trade shows. The trust note, which is one of four notes with a whole loan balance of $541 million, amortizes on a 25-year schedule. The property was 89.7% occupied as of July 2015.

RATING SENSITIVITIES

The Rating Outlook for all classes remains Stable. 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.

DUE DILIGENCE USAGE

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

Fitch affirms the following classes as indicated:

--$35.5 million class A-1 at 'AAAsf', Outlook Stable;

--$103.3 million class A-2 at 'AAAsf', Outlook Stable;

--$140 million class A-3 at 'AAAsf', Outlook Stable;

--$170 million class A-4 at 'AAAsf', Outlook Stable;

--$201 million class A-5 at 'AAAsf', Outlook Stable;

--$63.7 million class A-SB at 'AAAsf', Outlook Stable;

--$70.1 million class A-S at 'AAAsf', Outlook Stable;

--$782.9 million class X-A at 'AAAsf', Outlook Stable;

--$72.7 million class B at 'AA-sf', Outlook Stable;

--$36.3 million class C at 'A-sf', Outlook Stable;

--$0 class PEX at 'A-sf', Outlook Stable;

--$66.2 million class D at 'BBB-sf', Outlook Stable;

--$19.5 million class E at 'BBsf', Outlook Stable;

--$7.8 million class F at 'Bsf', Outlook Stable.

Fitch does not rate the class G certificate.

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

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=993546

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=993546

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/20151105006988/en/

Fitch Ratings
Primary Analyst
Roxanna Tangen
Associate Director
+1 312-368-3116
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1 212-908-0785
or
Media Relations, New York
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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