Approximately $1.30 Billion of Structured Securities Affected
New York, July 20, 2017 -- Moody's Investors Service, ("Moody's") has
affirmed the ratings on 14 classes in COMM 2013-CCRE6 Mortgage
Trust, Commercial Mortgage Pass-Through Certificates,
Series 2013-CCRE6 as follows:
Cl. A-2, Affirmed Aaa (sf); previously on Jul
21, 2016 Affirmed Aaa (sf)
Cl. A-3FL, Affirmed Aaa (sf); previously on Jul
21, 2016 Affirmed Aaa (sf)
Cl. A-3FX, Affirmed Aaa (sf); previously on Jul
21, 2016 Affirmed Aaa (sf)
Cl. A-4, Affirmed Aaa (sf); previously on Jul
21, 2016 Affirmed Aaa (sf)
Cl. A-M, Affirmed Aaa (sf); previously on Jul
21, 2016 Affirmed Aaa (sf)
Cl. A-SB, Affirmed Aaa (sf); previously on Jul
21, 2016 Affirmed Aaa (sf)
Cl. B, Affirmed Aa3 (sf); previously on Jul 21,
2016 Affirmed Aa3 (sf)
Cl. C, Affirmed A3 (sf); previously on Jul 21,
2016 Affirmed A3 (sf)
Cl. D, Affirmed Baa3 (sf); previously on Jul 21,
2016 Affirmed Baa3 (sf)
Cl. F, Affirmed B2 (sf); previously on Jul 21,
2016 Affirmed B2 (sf)
Cl. PEZ, Affirmed A1 (sf); previously on Jul 21,
2016 Affirmed A1 (sf)
Cl. E, Affirmed Ba2 (sf); previously on Jul 21,
2016 Affirmed Ba2 (sf)
Cl. X-A, Affirmed Aaa (sf); previously on Jul
21, 2016 Affirmed Aaa (sf)
Cl. X-B, Affirmed A2 (sf); previously on Jul
21, 2016 Affirmed A2 (sf)
RATINGS RATIONALE
The ratings on the P&I classes were affirmed because the transaction's
key metrics, including Moody's loan-to-value (LTV)
ratio, Moody's stressed debt service coverage ratio (DSCR) and the
transaction's Herfindahl Index (Herf), are within acceptable
ranges.
The ratings on the IO classes were affirmed based on the credit quality
of the referenced classes.
The ratings on class PEZ was affirmed due to the weighted average rating
factor (WARF) of the exchangeable classes.
Moody's rating action reflects a base expected loss of 2.6%
of the current pooled balance, the same as at Moody's last
review. Moody's base expected loss plus realized losses is now
2.4% of the original pooled balance, compared to 2.6%
at the last review. Moody's provides a current list of base
expected losses for conduit and fusion CMBS transactions on moodys.com
at http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF215255.
FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS:
The performance expectations for a given variable indicate Moody's forward-looking
view of the likely range of performance over the medium term. Performance
that falls outside the given range can indicate that the collateral's
credit quality is stronger or weaker than Moody's had previously expected.
Factors that could lead to an upgrade of the ratings include a significant
amount of loan paydowns or amortization, an increase in the pool's
share of defeasance or an improvement in pool performance.
Factors that could lead to a downgrade of the ratings include a decline
in the performance of the pool, loan concentration, an increase
in realized and expected losses from specially serviced and troubled loans
or interest shortfalls.
METHODOLOGY UNDERLYING THE RATING ACTION
The methodologies used in these ratings were "Approach to Rating US and
Canadian Conduit/ Fusion CMBS" published in December 2014, and "Moody's
Approach to Rating Large Loan and Single Asset/Single Borrower CMBS"
published in October 2015. Please see the Rating Methodologies
page on www.moodys.com for a copy of these methodologies.
The methodology used in rating the exchangeable class, Cl.
PEZ was "Moody's Approach to Rating Repackaged Securities"
published in June 2015. Please see the Rating Methodologies page
on www.moodys.com for a copy of this methodology.
Additionally, the methodology used in rating Cl. X-A
and Cl. X-B was "Moody's Approach to Rating
Structured Finance Interest-Only (IO) Securities" published
in June 2017. Please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.
DEAL PERFORMANCE
As of the July 12th, 2017 distribution date, the transaction's
aggregate certificate balance has decreased by 10% to $1.35
Billion from $1.49 Billion at securitization. The
certificates are collateralized by 46 mortgage loans ranging in size from
less than 1% to 10% of the pool, with the top ten
loans (excluding defeasance) constituting 64% of the pool.
One loan, constituting 9.6% of the pool, has
an investment-grade structured credit assessment. One loan,
constituting 7.4% of the pool, has defeased and is
secured by US government securities.
Moody's uses a variation of Herf to measure the diversity of loan
sizes, where a higher number represents greater diversity.
Loan concentration has an important bearing on potential rating volatility,
including the risk of multiple notch downgrades under adverse circumstances.
The credit neutral Herf score is 40. The pool has a Herf of 18,
compared to 20 at Moody's last review.
Seven loans, constituting 7% of the pool, are on the
master servicer's watchlist. The watchlist includes loans
that meet certain portfolio review guidelines established as part of the
CRE Finance Council (CREFC) monthly reporting package. As part
of Moody's ongoing monitoring of a transaction, the agency
reviews the watchlist to assess which loans have material issues that
could affect performance.
No loans have been liquidated from the pool and no loans are currently
in special servicing.
Moody's received full or partial year 2016 operating results for 100%
of the pool, and partial year 2017 operating results for 51%
of the pool (excluding specially serviced and defeased loans).
Moody's weighted average conduit LTV is 91%, compared
to 89% at Moody's last review. Moody's conduit
component excludes loans with structured credit assessments, defeased
and CTL loans, and specially serviced and troubled loans.
Moody's net cash flow (NCF) reflects a weighted average haircut
of 16% to the most recently available net operating income (NOI).
Moody's value reflects a weighted average capitalization rate of
9.7%. Moody's actual and stressed conduit DSCRs
are 1.92X and 1.20X, respectively, compared
to 2.04X and 1.25X at the last review. Moody's
actual DSCR is based on Moody's NCF and the loan's actual
debt service. Moody's stressed DSCR is based on Moody's
NCF and a 9.25% stress rate the agency applied to the loan
balance.
The loan with a structured credit assessment is the Federal Center Plaza
Loan ($130.0 million -- 9.6% of the pool),
which is secured by two adjacent office buildings totaling 725,000
square feet (SF) in Washington, DC. Well-located between
the US Capitol and Washington Monument, two blocks from two separate
metro stations (Federal Center SW and L'Enfant Plaza), the
property was 94% leased as of December 2016, compared to
100% leased at last review, with federal government agencies
as the largest tenants. Moody's structured credit assessment and
stressed DSCR are a3 (sca.pd) and 1.49X, respectively,
compared to a2 (sca.pd) and 1.51X at Moody's last
review.
The top three conduit loans represent 25% of the pool balance.
The largest loan is the Moffett Towers Loan ($117.0 million
-- 8.7% of the pool), which represents
a pari passu portion of a $326.5 million senior mortgage
loan. The loan is secured by three eight-story Class A office
buildings totaling 950,000 SF located in Sunnyvale, California.
Each building is LEED Gold certified and the properties have 2,881
parking spaces as well as shared amenities. As of December 2016,
the property was 100% leased, up from 96% at December
2015 and 89% at securitization. All tenants at the property
are on triple net leases. Moody's LTV and stressed DSCR are 101%
and 0.96X, respectively, compared to 103% and
0.95X at the last review.
The second largest loan is the Rochester Hotel Portfolio ($104.1
million A note and $9.5 million B note --
the A note is 7.7% of the pool), which is secured
by one limited-service, one extended stay and two full-service
hotels located in Rochester, Minnesota. The four Interstate
Hotels & Resorts-managed hotels total 1,230 keys and
are each connected to the Mayo Clinic via climate controlled pedestrian
tunnels. Moody's A note LTV and stressed DSCR are 93% and
1.31X, respectively, compared to 86% and 1.41X
at the last review.
The third largest loan is The Avenues Loan ($110.0 million
-- 8.2% of the pool), which is secured
by a 599,000 SF retail component of a 1.1M SF super-regional
mall in Jacksonville, Florida. The property was 92%
leased as of December 2016 compared to 90% leased as of December
2015. The sponsor is Simon Property Group. Moody's LTV and
stressed DSCR are 75% and 1.40X, respectively,
compared to 67% and 1.50X at the last review.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and sensitivity
analysis, see the sections Methodology Assumptions and Sensitivity
to Assumptions of the disclosure form.
The analysis includes an assessment of collateral characteristics and
performance to determine the expected collateral loss or a range of expected
collateral losses or cash flows to the rated instruments. As a
second step, Moody's estimates expected collateral losses or cash
flows using a quantitative tool that takes into account credit enhancement,
loss allocation and other structural features, to derive the expected
loss for each rated instrument.
Moody's did not use any stress scenario simulations in its analysis.
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Kevin Li
Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
EunJee EJ Park
VP - Senior Credit Officer
Structured Finance Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
