Approximately $1.02 Billion of Structured Securities Affected
New York, August 09, 2018 -- Moody's Investors Service, ("Moody's") has
upgraded the ratings on four classes and affirmed the ratings on nine
classes in COMM 2013-CCRE6 Mortgage Trust, Commercial Mortgage
Pass-Through Certificates, Series 2013-CCRE6 as follows:
Cl. A-SB, Affirmed Aaa (sf); previously on Jul
20, 2017 Affirmed Aaa (sf)
Cl. A-3FL, Affirmed Aaa (sf); previously on Jul
20, 2017 Affirmed Aaa (sf)
Cl. A-3FX, Affirmed Aaa (sf); previously on Jul
20, 2017 Affirmed Aaa (sf)
Cl. A-4, Affirmed Aaa (sf); previously on Jul
20, 2017 Affirmed Aaa (sf)
Cl. A-M, Affirmed Aaa (sf); previously on Jul
20, 2017 Affirmed Aaa (sf)
Cl. B, Upgraded to Aa2 (sf); previously on Jul 20,
2017 Affirmed Aa3 (sf)
Cl. C, Upgraded to A2 (sf); previously on Jul 20,
2017 Affirmed A3 (sf)
Cl. D, Affirmed Baa3 (sf); previously on Jul 20,
2017 Affirmed Baa3 (sf)
Cl. E, Affirmed Ba2 (sf); previously on Jul 20,
2017 Affirmed Ba2 (sf)
Cl. F, Affirmed B2 (sf); previously on Jul 20,
2017 Affirmed B2 (sf)
Cl. PEZ, Upgraded to Aa3 (sf); previously on Jul 20,
2017 Affirmed A1 (sf)
Cl. X-A, Affirmed Aaa (sf); previously on Jul
20, 2017 Affirmed Aaa (sf)
Cl. X-B, Upgraded to A1 (sf); previously on Jul
20, 2017 Affirmed A2 (sf)
RATINGS RATIONALE
The ratings on eight 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 two P&I classes, Cl. B and Cl.
C, were upgraded based primarily on an increase in credit support
resulting from loan paydowns and amortization. The deal has paid
down 20.8% since Moody's last review and 28.5%
since securitization.
The rating on the exchangeable class, Cl. PEZ, was
upgraded due to the weighted average rating factor (WARF) of its exchangeable
classes.
The rating on one IO class, Class X-A, was affirmed
based on the credit quality of its referenced classes.
The rating on one IO class, Class X-B, was upgraded
due to an improvement in the credit quality of the referenced classes.
Moody's rating action reflects a base expected loss of 2.3%
of the current pooled balance, compared to 2.6% at
Moody's last review. Moody's base expected loss plus realized
losses is now 1.6% of the original pooled balance,
compared to 2.4% 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 rating COMM 2013-CCRE6 Mortgage Trust,
Cl. A-SB, Cl. A-3FL, Cl.
A-3FX, Cl. A-4, Cl. A-M,
Cl. B, Cl. C, Cl. D, Cl.
E, and Cl. F were "Approach to Rating US and Canadian Conduit/Fusion
CMBS" published in July 2017 and "Moody's Approach to Rating
Large Loan and Single Asset/Single Borrower CMBS" published in July
2017. The principal methodology used in rating COMM 2013-CCRE6
Mortgage Trust, Cl. PEZ was "Moody's Approach
to Rating Repackaged Securities" published in June 2015.
The methodologies used in rating COMM 2013-CCRE6 Mortgage Trust,
Cl. X-A and Cl. X-B were "Approach to Rating
US and Canadian Conduit/Fusion CMBS" published in July 2017, "Moody's
Approach to Rating Large Loan and Single Asset/Single Borrower CMBS"
published in July 2017 and "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 these methodologies.
DEAL PERFORMANCE
As of the July 10, 2018 distribution date, the transaction's
aggregate certificate balance has decreased by 28.5% to
$1.068 billion from $1.494 billion at securitization.
The certificates are collateralized by 41 mortgage loans ranging in size
from less than 1% to 12.2% of the pool, with
the top ten loans (excluding defeasance) constituting 73% of the
pool. One loan, constituting 12.2% of the pool,
have investment-grade structured credit assessments. Three
loans, constituting 1.6% of the pool, have defeased
and are 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 15,
compared to 18 at Moody's last review.
Four loans, constituting 6.9% 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 one loan, constituting
less than 0.5% of the pool, is currently in special
servicing.
Moody's received full year 2017 operating results for 92% of the
pool, and partial year 2018 operating results for 36% of
the pool (excluding specially serviced and defeased loans). Moody's
weighted average conduit LTV is 88%, compared to 91%
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 15.1%
to the most recently available net operating income (NOI). Moody's
value reflects a weighted average capitalization rate of 9.4%.
Moody's actual and stressed conduit DSCRs are 1.98X and 1.22X,
respectively, compared to 1.92X and 1.20X 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 -- 12.2% of the
pool), which is secured by two adjacent office buildings totaling
725,000 square feet (SF) in Washington, DC. The property
is 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 87% leased as of March 2018,
compared to 94% as of December 2016, with federal government
agencies as the largest tenants. The Department of State downsized
their space at the property at their lease expiration in January 2018,
from 388,523 SF to 297,269 SF. Additionally,
there is significant lease rollover risk from the Federal Emergency
Management Agency, which has a lease expiration date in August 2019.
Due to the significant tenant concentration at the property, Moody's
value incorporated a partial Lit/Dark analysis. Moody's structured
credit assessment and stressed DSCR are baa3 (sca.pd) and 1.30X,
respectively.
The top three conduit loans represent 29.2% of the pool
balance. The largest loan is the Moffett Towers Loan ($114.9
million -- 10.8% of the pool), which represents
a pari passu portion of a $320.8 million senior mortgage
loan. The loan is secured by three eight-story Class A office
buildings totaling approximately 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 March 2018, the property was 98% leased, compared
to 100% in December 2016 and 89% at securitization.
All tenants at the property are on triple net leases. Moody's LTV
and stressed DSCR are 99% and 0.98X, respectively,
compared to 101% and 0.96X at the last review.
The second largest loan is The Avenues Loan ($110.0 million
-- 10.3% of the pool), which is secured by an
approximately 599,000 SF retail component of a 1.1 million
SF super-regional mall in Jacksonville, Florida. The
property was 90% leased as of December 2017, compared to
92% leased in December 2016 and 90% in December 2015.
The property is sponsored by Simon Property Group. Moody's LTV
and stressed DSCR are 77% and 1.38X, respectively,
compared to 75% and 1.40X at the last review.
The third largest loan is the Paramount Plaza Loan ($86.9
million -- 8.1% of the pool), which
is secured by two 21-story, Class B office buildings connected
by a shared parking garage. The property is located within the
Mid-Wilshire submarket of Los Angeles, California,
approximately ten miles from LAX. At securitization, the
office space was 71.7% occupied by approximately 150 tenants,
with no tenant accounting for more than 7% of the net rentable
area. As of March 2018, the property was 62% leased,
up from to 60% in December 2016. Moody's LTV and stressed
DSCR are 104% and 0.99X, respectively, compared
to 106% and 0.97X 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.
Rhett Terrell
Associate Lead 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
Matthew Halpern
Vice President - Senior Analyst
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
