OREANDA-NEWS. Fitch Ratings has affirmed 14 classes of WFRBS Commercial Mortgage Trust 2013-C11 certificates due to stable performance since issuance. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are based on the stable performance of the underlying collateral pool. As of the January 2016 distribution, the pool's aggregate principal balance has been paid down by 2.2% to $1.41 billion from $1.44 billion at issuance. 100% of the loans reported full year 2014 financials and 95% of the pool report partial year 2015 financials. Based on the annualized 2015 financials, the pool's overall net operating income (NOI) has increased 8.2% over the reported portfolio NOI at issuance.

There are six loans (9.81%) on the servicer watchlist, four (1.23%) of which are on the watchlist due to concerns with increasing vacancy rate at the properties and the lack of information from the sponsors regarding progress on leasing activity. The remaining two loans (8.58%) are on the servicer list for a lack of information or response to the servicer loan inquiries. None of the loans on the watchlist are considered Fitch Loans of Concern. One loan (1%) is in special servicing.

The specially serviced loan, Minot Hotel Portfolio, is collateralized by two hotels, the Holiday Inn Riverside and Holiday Inn Express, comprising of 238 rooms located in the town of Minot, ND which is 110 miles north of the state capital of Bismarck. At issuance, the portfolio was performing well with occupancy at 67% and a debt service coverage ratio (DSCR) of 2.77 times (x). Performance decreased significantly during 2015 as the market expanded with 12 new hotels opening during the preceding 12 months as well as decline in demand due to dropping oil prices. The sponsor commenced with a large property improvement plan and a number of units were decommissioned during the renovation. Performance may improve in 2016 as work is completed; however, Fitch will monitor the loan as the sponsor updates the servicer on the portfolio's operation during the first half of 2016. Fitch losses are based on current cashflow and a stressed cap rate.

The largest loan is collateralized by a 56-story, 1,302,107 square foot (sf) Republic Plaza, a class A, LEED EB Gold certified urban office property located in Denver, CO (11%). The property is located within the central business district approximately two blocks from the city's primary mass transit stations and minutes from the city's major freeways. The sponsor of the property is Brookfield Properties Investor Corporation, a wholly owned entity of Brookfield Office Properties, Inc. The property serves as the headquarters for three major corporate entities, Encana (35% of NRA, lease expiration April 2019), DCP Midstream (12% of NRA, lease expiration May 2016), and Wheeler Trigg O'Donnell (6% of NRA, lease expiration January 2023). The subject commands some of the highest rates in the submarket and a number of tenant leases are scheduled to roll during the term of the loan. During the past 12 months, more than one million square feet of office space has been completed in the market which has placed downward pressure on rental rates. Fitch will monitor the loan as the sponsor works to renew a number of tenants, including DCP Midstream, in a competitive leasing environment.

Fitch continues to monitor the performance of the Community Corporate Center, the fifteenth largest loan in the pool (1.1%). The loan is collateralized by 255,371 sf office property located in suburban Columbus, OH. The subject has a diverse rent roll of 25 distinct tenants with the top five comprising only 45.9% of the net rentable area (NRA). However, tenant rollover at the property is concentrated over the next 36 months with 24.1% and 11.2% of the NRA rolling in 2016 and 2018, respectively. A leasing reserve was established at issuance to mitigate the risk and costs associated with renewing the existing tenants in a highly competitive market environment.

RATING SENSITIVITIES

The Rating Outlook for all classes remains Stable. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics.

DUE DILIGENCE USAGE

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

Fitch affirms the following classes:

--$34.1 million class A-1 at 'AAAsf'; Outlook Stable;
--$278.5 million class A-2 at 'AAAsf'; Outlook Stable;
--$46.8 million class A-3 at 'AAAsf'; Outlook Stable;
--$100 million class A-4 at 'AAAsf'; Outlook Stable;
--$417.8 million class A-5 at 'AAAsf'; Outlook Stable;
--$97.3 million class A-SB at 'AAAsf'; Outlook Stable;
--$134.7 million class A-S at 'AAAsf'; Outlook Stable;
--$1.1 billion class X-A at 'AAAsf'; Outlook Stable;
--$152.6 million class X-B at 'A-sf'; Outlook Stable;
--$93.4 million class B at 'AA-sf'; Outlook Stable;
--$59.2 million class C at 'A-sf'; Outlook Stable;
--$46.7 million class D at 'BBB-sf'; Outlook Stable;
--$32.2 million class E at 'BBsf'; Outlook Stable;
--$25.1 million class F at 'Bsf'; Outlook Stable.

Fitch does not rate the class G certificate.