OREANDA-NEWS. Fitch Ratings has affirmed Taurus 2013 (GMF1) PLC as follows:

EUR681.9m class A due May 2024 (ISIN XS0932026353): affirmed at 'AAAsf'; Outlook Stable
Deferred Arrangement Fee Certificates (DACs) (ISIN XS0933680539) due May 2024 and referenced to the notional balance of the class A notes: affirmed at 'Asf'; Outlook Stable
EUR124.9m class B due May 2024 (ISIN XS0932027245): affirmed at 'AAsf'; Outlook Stable
EUR115.3m class C due May 2024 (ISIN XS0932027831): affirmed at 'Asf'; Outlook Stable
EUR91.2m class D due May 2024 (ISIN XS0932028219): affirmed at 'BBBsf'; Outlook Stable
EUR19.0m class E due May 2024 (ISIN XS0932028300): affirmed at 'BBBsf'; Outlook Stable

The CMBS transaction is secured by a portfolio of German multifamily housing (MFH) assets managed by Vonovia SE and located predominantly in Dresden.

KEY RATING DRIVERS
The portfolio's performance has been stable/positive since closing in 2013. Residential vacancy decreased further to 3.5% in August 2015 from 3.8% in November 2014. Rents have increased to EUR5.3 per sq m and month from around EUR4.9 since closing while irrecoverable costs have remained stable, fluctuating at around 30% of passing rent and slightly lower than Fitch's initial estimate.

The transaction features a relatively lower irrecoverable cost ratio compared with other German MFH transactions rated by Fitch, which partly reflects the geographical focus around Dresden. The ratio may fluctuate amid capital expenditure for modernisation and energy efficiency, which Fitch considers vital in maintaining the appeal of the properties over the long term.

While the appraised market value per residential unit had slightly decreased between closing and the last review of the transaction in January 2015, this trend has since been reversed.

Investor appetite for granular income streams secured by portfolios of German MFH properties has remained strong in 2015 and Fitch expects interest to remain high for the foreseeable future. Likewise, tenant demand for affordable housing is expected to stay strong in Germany, not least due to the substantial net immigration in 2015.

Fitch estimates a 'Bsf' market value for the portfolio of EUR1,488m.

RATING SENSITIVITIES
Any disruption in the management of the portfolio or the economic health of the Dresden region could result in falling debt service coverage. If this was not expected to be reversed, it could prompt downgrades or revisions of the Outlooks to Negative.

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

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring.

Prior to the transaction closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, which indicated no adverse findings material to the rating analysis.

Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
The information below was used in the analysis.
- Quarterly servicer report provided by the servicer as at August 2015
- Cash Manager Report provided by the cash manager as at November 2015

REPRESENTATIONS AND WARRANTIES
A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms to those typical for the asset class is available by accessing the appendix that accompanies the initial new issue report (see Taurus 2013 (GMF1) PLC - Appendix, dated 16 May 2013 at www.fitchratings.com). In addition refer to the special report "Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions" dated 12 June 2015 available on the Fitch website.