Fitch Affirms WFRBS 2013-C13
KEY RATING DRIVERS
Fitch's affirmations are based on the stable performance of the underlying collateral pool. There have been no delinquent or specially serviced loans since issuance. Fitch has designated one (1.7%) Fitch Loan of Concern (FLOC) due to upcoming tenant rollover risk.
As of the April 2015 distribution date, the pool's aggregate principal balance has been reduced by 2.1% to \\$858.6 million from \\$876.7 million at issuance. No loans are defeased. Interest shortfalls are currently affecting the non-rated class G.
The largest loan in the pool (10.1% of the pool) is secured by two office buildings located in San Francisco, CA. As of September 2014 rent roll, the average occupancy and debt service coverage ratios (DSCR) were 99.8% and 2.81x, respectively. Amazon is the largest tenant, occupying approximately 40% of the net rentable area (NRA) through October 2019. Less than 1% tenant rollover is scheduled over the next two years.
The second largest loan in the pool (9.9% of the pool) is secured by an 188,646 square feet (sf), 42-story office tower located in Charlotte, NC. The property now serves as the East Coast headquarters of Wells Fargo Bank (69.5% of NRA; lease expires Dec. 31, 2021). As of September 2014 rent roll, occupancy and DSCR were 98% and 2.26x, respectively. There is minimal tenant rollover risk scheduled for the next two years: no more than 4% per annum.
The one FLOC (1.7% of the pool) is secured by a portfolio of three adjacent industrial buildings, totaling 193,337-sf, located in Santa Rosa, CA. As of year-end 2014, the portfolio wide occupancy and DSCR were 100% and 2.33x, respectively. Approximately 36.4% and 11.5% in tenant rollover is scheduled for 2015 and 2016, respectively. Fitch will continue to monitor for leasing status updates.
RATING SENSITIVITIES
Rating Outlooks on classes A-1 through F are Stable due to increasing credit enhancement from continued pay down and the stable performance of the collateral. The collateral has a weighted average Fitch stressed loan to value (LTV) of 76.5%. No upgrades or downgrades are expected unless the operating performance of the loans changes considerably.
Fitch affirms the following classes as indicated:
--\\$38.1 million class A-1 at 'AAAsf'; Outlook Stable;
--\\$79.5 million class A-2 at 'AAAsf'; Outlook Stable;
--\\$200 million class A-3 at 'AAAsf'; Outlook Stable;
--\\$206.5 million class A-4 at 'AAAsf'; Outlook Stable;
--\\$686.6 million interest only class X-A at 'AAAsf'; Outlook Stable;
--\\$81.1 million interest only class X-B at 'A-sf'; Outlook Stable;
--\\$71.5 million class A-SB at 'AAAsf'; Outlook Stable;
--\\$91 million class A-S at 'AAAsf'; Outlook Stable;
--\\$51.5 million class B at 'AA-sf'; Outlook Stable;
--\\$29.6 million class C at 'A-sf'; Outlook Stable;
--\\$32.9 million class D at 'BBB-sf'; Outlook Stable;
--\\$15.3 million class E at 'BBsf'; Outlook Stable;
--\\$16.4 million class F at 'Bsf'; Outlook Stable.
Fitch does not rate the class G certificates or the interest only class X-C certificates.
A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:
--'WFRBS Commercial Mortgage Trust 2013-C13 -- Appendix' (May 29, 2013).
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