Fitch Ratings has affirmed Institutional Mortgage Capital, LP's (IMSCI) commercial mortgage pass-through certificates, series 2013-3. A detailed list of rating actions follows at the end of this release. All currencies are in Canadian dollars (CAD).

The certificates represent the beneficial ownership in the trust, primary assets of which are 35 loans secured by 40 Canadian commercial properties. The loans were contributed to the trust by Institutional Mortgage Capital, LP.

KEY RATING DRIVERS

The affirmations are based on the stable performance of the underlying collateral pool since issuance. As of the January 2016 remittance, the pool has had no delinquent or specially serviced loans. The pool's aggregate principal balance has been paid down by approximately 10.5% since issuance. There are no partial or full-term interest-only loans in the pool. Approximately 90.3% of the pool has full or partial recourse to the loans' borrowers and sponsors.

Given the current low price of oil and the dependence of Alberta on the oil industry, Fitch is cognizant of the potential risks real estate in Alberta may have. The pool has seven loans located in Alberta, representing 18.9% of the pool. However, the six largest of the seven loans have full or partial recourse to the guarantors and/or sponsors; the other loan is part of a crossed U-Haul self-storage portfolio. The three Fort McMurray multifamily properties (8.8% of the pool), which are not crossed, have institutional REIT sponsorship. The two Calgary office properties have granular tenancy.

The largest loan of the pool (10.8% of the pool balance) is secured by a 362,577 square foot (sf) enclosed shopping center located in Dollard-des-Ormeaux (Montreal), Quebec. The property is anchored by Canadian Tire and Super C grocery. The pari passu loan is full recourse to the borrowing entity and its owner and is partial recourse to the sponsor.

The second largest loan (9.1%) is secured by the Merivale Mall, a 225,082 square foot (sf) enclosed shopping center located in Ottawa, Ontario. The property, which was built in 1977 and renovated in 1994, is anchored by Farm Boy and Sport Chek. The pari passu loan is full recourse to the borrowing entity and partial recourse to the sponsor. Discount retailer Marshalls opened in 2015.

The third largest loan (8.8%) is the Shoppers Drug Mart Portfolio which consists of eight cross-collateralized and cross-defaulted loans. Each loan is secured by a retail property fully leased by Shoppers Drug Mart. The portfolio consists of 141,093 sf and is located across Ontario in Ottawa, London, and Windsor. Lease expirations for the portfolio range from 2021 to 2031.

RATING SENSITIVITIES

Although all rated classes maintain Stable Outlooks, Fitch will continue to monitor the properties exposed to the energy sector in addition to reviewing the year-end 2015 reporting when provided by the servicer.

DUE DILIGENCE USAGE

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

Fitch has affirmed the following ratings:

--$11.1 million class A-1 at 'AAAsf'; Outlook Stable;

--$96.4 million class A-2 at 'AAAsf'; Outlook Stable;

--$81.6 million class A-3 at 'AAAsf'; Outlook Stable;

--$5.3 million class B at 'AAsf'; Outlook Stable;

--$8.5 million class C at 'Asf'; Outlook Stable;

--$6.9 million class D at 'BBBsf'; Outlook Stable;

--$3.8 million class E at 'BBB-sf'; Outlook Stable;

--$3.1 million class F at 'BBsf'; Outlook Stable;

--$2.5 million class G at 'Bsf'; Outlook Stable.

Fitch does not rate the $5 million class H and the interest-only class X.

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. 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

IMSCI 2013-3 -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=703959

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=997901

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=997901

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.