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Rating Action:

Moody's Affirms Six Classes of Queens Center Mortgage Trust 2013-QC

Global Credit Research - 31 Mar 2017

Approximately $600 Million of Structured Securities Affected

NOTE: On April 6, 2017, the Press Release was corrected as follows: In the Second sentence of the first paragraph under DEAL PERFORMANCE, the second sponsor was changed to Ontario Teacher's Pension Plan Board from Ontario Teacher's Pension Fund. Revised release follows:

New York, March 31, 2017 -- Moody's Investors Service has affirmed the ratings on six classes in Queens Center Mortgage Trust 2013-QC, Series 2013-QC as follows:

Cl. A, Affirmed Aaa (sf); previously on Apr 29, 2016 Affirmed Aaa (sf)

Cl. B, Affirmed Aa2 (sf); previously on Apr 29, 2016 Affirmed Aa2 (sf)

Cl. C, Affirmed A1 (sf); previously on Apr 29, 2016 Affirmed A1 (sf)

Cl. D, Affirmed A3 (sf); previously on Apr 29, 2016 Affirmed A3 (sf)

Cl. X-A, Affirmed Aaa (sf); previously on Apr 29, 2016 Affirmed Aaa (sf)

Cl. X-B, Affirmed Aa2 (sf); previously on Apr 29, 2016 Affirmed Aa2 (sf)

RATINGS RATIONALE

The ratings on the four P&I classes were affirmed because the transactions key metrics, including Moody's loan-to-value (LTV) ratio and Moody's stressed debt service coverage ratio (DSCR), are within acceptable ranges. The ratings on the two IO classes, Classes X-A and X-B, were affirmed based on the credit performance (or the weighted average rating factor or WARF) of their referenced classes.

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 or interest shortfalls.

METHODOLOGY UNDERLYING THE RATING ACTION

The principal methodology used in these ratings was "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 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 Securities" published in October 2015. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

Please note that on February 27, 2017, Moody's released a "Request for Comment" in which it has requested market feedback on proposed changes to its methodology for rating structured finance interest-only (IO) securities called "Moody's Approach to Rating Structured Finance Interest-Only Securities," dated October 20, 2015. If Moody's adopts the new methodology as proposed, the changes could affect the ratings of Queens Center Mortgage Trust 2013-QC. Please see "Moody's Proposes Revised Approach to Rating Structured Finance Interest-Only (IO) Securities", which is available at www.moodys.com, for more information about the implications of the proposed changes to the methodology on Moody's ratings.

DESCRIPTION OF MODELS USED

Moody's review used the excel-based Large Loan Model. The large loan model derives credit enhancement levels based on an aggregation of adjusted loan-level proceeds derived from Moody's loan-level LTV ratios. Major adjustments to determining proceeds include leverage, loan structure and property type. Moody's also further adjusts these aggregated proceeds for any pooling benefits associated with loan level diversity and other concentrations and correlations.

DEAL PERFORMANCE

As of the March 13, 2017 distribution date, the transaction's aggregate certificate balance remains unchanged at $600 million, with no additional debt. The sponsors are The Macerich Company and the Ontario Teacher's Pension Plan Board. The property is self-managed by Macerich Management Company, an affiliate of one of the sponsors.

The interest-only, fixed-rate loan is secured by the 411,177 square foot (SF) leasehold and fee interest portion of a 967,901 SF regional mall known as Queens Center. The mall was constructed in 1972 but redeveloped and expanded (Macy's and in-line mall space) at a cost of $275 million in 2004. Queens Center is one of the top ten performing regional malls in the United States in terms of sales per square foot (PSF) with in-line sales exceeding $1,000 PSF since securitization. The property is anchored by two multi-level units owned and occupied by Macy's and JC Penney. Sales for these two anchor tenants, Macy's and JC Penney are down 8% and 26% since securitization, respectively.

The property was 98% leased as of the September 2016 rent roll. Total comparable in-line sales based on the trailing twelve month period ending October 2016 were $1,128 PSF, compared to $1,062 PSF over the same period in 2015. The property's Net Cash Flow (NCF) for the first nine months of 2016 was $54.4 million. Moody's stabilized NCF remains at $56.9 million, unchanged from securitization.

Moody's Trust LTV Ratio is 74% and Moody's Trust Stressed DSCR is 1.03X, unchanged from securitization. The trust has not experienced any losses or interest shortfalls since securitization.

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.

Nicola Gomes
Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Matthew Halpern
Asst Vice President - Analyst
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

No Related Data.
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