Fitch Ratings has affirmed seven classes of COMM 2013-300P
The Rating Outlooks for classes A1, A1P, B, C, and X-A remain Negative.
RATING ACTIONS
Entity / Debt
Rating
Prior
COMM 2013-300P
A1 12625XAA5
LT
BBB-sf
Affirmed
BBB-sf
A1P 12625XAC1
LT
BBB-sf
Affirmed
BBB-sf
B 12625XAG2
LT
BB-sf
Affirmed
BB-sf
C 12625XAJ6
LT
B-sf
Affirmed
B-sf
D 12625XAL1
LT
CCCsf
Affirmed
CCCsf
E 12625XAN7
LT
CCCsf
Affirmed
CCCsf
X-A 12625XAE7
LT
BBB-sf
Affirmed
BBB-sf
Page
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VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
The affirmations reflect the continued performance stabilization of the property, including improved occupancy and positive leasing momentum since Fitch's last rating action.
The Negative Outlooks reflect the potential for downgrades of up to one category if further progress is not made toward recovering closer to Fitch's expectations for sustainable performance, market conditions deteriorate and/or rents on future new leasing at the property does not improve. Additionally, downgrades could occur in the event the loan transfers to the special servicer at or before the fully extended
Loan Modification/Extension: The loan was transferred back to the master servicer in
Fitch
Fitch's updated NCF incorporates leases-in-place as of the YE 2023 rent roll, with credit for near-term contractual rent steps and tenants expected to take occupancy, in addition to straight-lined rent credit for a portion of
Since the last rating action, new leasing activity occurred on approximately 13% of the NRA; these new leases have commencement dates in 2024 and 2025. Tenants taking over vacant spaces include
When factoring in Fitch rent assumptions of
The servicer-reported YE 2023 NCF DSCR was 1.38x, compared with 1.56x in 2022, 1.22x in 2021 and 1.49x in 2020 for the interest-only loan.
Stable to Improving Occupancy: Reported occupancy as of the
High Fitch Leverage: The
Sponsorship: The loan sponsor is controlled by
Limited Structural Features: The loan has no reserves, no structure in place to mitigate the upcoming
Strong Location; ESG Factors:
The property underwent substantial renovations between 1998 and 2000, including a new lobby, elevator modernization and upgraded building systems. Additionally, a facade renovation around the same time completely transformed the property's exterior with new windows, aluminum spandrel panels and retail storefronts. Fitch assigned
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
Downgrades may be possible in the event the loan transfers to the special servicer for not being able to refinance before the fully extended
Additionally, should leasing momentum slow or reverse course or if new leasing occurs at rates significantly below the submarket and performance does not recover to Fitch's expectations on sustainable performance downgrades are possible.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Upgrades are not likely given the challenges facing office and retail properties in the submarket and single-event risk. The current ratings reflect Fitch's view of sustainable performance; however, upgrades are possible with significant and sustained leasing that contributes to improved Fitch sustainable NCF from occupancy well in excess of the current 83%, new leasing above the average in-place rates of
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
COMM 2013-300P has an ESG Relevance Score of '4' [+] for Waste & Hazardous Materials Management; Ecological Impacts due to {DESCRIPTION OF ISSUE/RATIONALE}, which has a positive impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
Additional information is available on www.fitchratings.com
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