Fitch Affirms COMM 2013- SFS
KEY RATING DRIVERS
The affirmations reflect the stable performance and strong occupancy of the underlying collateral. The collateral consists of the Scottsdale Fashion Square, a 1.4 million square foot (sf) super-regional mall located in Scottsdale, AZ. The property is anchored by Macy's, Nordstrom, Neiman Marcus, Barneys New York, and Dillard's (non-owned). The collateral is approximately 96% occupied by over 200 tenants. The property is currently undergoing a renovation, which should add approximately 135,000 sf to the mall. The additional space is fully leased to Dicks Sporting Goods and Harkins theater.
Fitch reviewed the most recent available financial performance of the collateral as of Sept. 30 2014; the servicer-reported Debt Service Coverage Ratio (DSCR) was 2.06x. As of the March 2015 distribution date, the loan's balance declined 3.98% to \$504 million from \$525 million at issuance due to scheduled amortization.
RATING SENSITIVITY
The Rating Outlook for all classes remains Stable. No rating actions are anticipated unless there are material changes in the property's performance or cash flow. Fitch will continue to monitor the mall's performance to ensure that revenues and expenses considered at the time of Fitch's initial ratings remain in line over the loans' terms.
Fitch affirms the following classes:
--\$102.6 million class A-1 at 'AAAsf'; Outlook Stable;
--\$244.9 million class A-2 at 'AAAsf'; Outlook Stable;
--Interest only class X-A at 'AAAsf'; Outlook Stable;
--\$67.3 million class B at 'AAsf'; Outlook Stable;
--\$49.6 million class C at 'Asf'; Outlook Stable;
--\$39.7 million class D at 'BBB+sf'; Outlook Stable.
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