KBRA Downgrades One Rating of COMM 2013-LC13 to D (sf) Following Realization of Principal Losses
5 Sep 2024 | New York
KBRA downgrades the rating of the Class F certificate to D (sf) from C (sf) for COMM 2013-LC13, a CMBS conduit transaction, following realized losses incurred from the reimbursement of non-recoverable advances. According to the August 2024 remittance report, the reimbursement of non-recoverable advances related to one of the four remaining assets in the pool resulted in a cumulative principal loss of $4.1 million. The loss was allocated to the Class F certificate ($3.7 million, 39.0% of original balance) and remaining principal balance of the Class G certificate ($415,174), which is not rated by KBRA.
There are $32.0 million in cumulative principal losses to date, as reported in the August 2024 remittance report. Of the cumulative loss to date, reimbursement of non-recoverable advances totaling $4.1 million occurred in the August 2024 remittance related to the 201 North Charles Street REO asset (4th largest, 12.2% of the current pool balance). Along with the reimbursement of non-recoverable advances, the transaction has incurred losses from the liquidation of three previously specially serviced assets: Red Roof Inn Laredo ($2.6 million, May 2019), NorthPointe Apartments ($36.3 million, January 2021), and Fairfield Inn & Suites Beachwood ($8.5 million, May 2022), which resulted in loss severities of 36.0%, 70.0%, and 7.0%, respectively.
KBRA's other outstanding transaction ratings are unchanged at this time. The applied loss this month is in line with KBRA's estimated losses based on KBRA's most recent surveillance review from March 7, 2024.
Rating Sensitivities
Future rating actions will be dependent upon the ongoing assessment of the likelihood of ultimate payment of principal and accrued interest on the rated securities. The assessment will consider the expected and actual losses on the remaining assets in the transaction, as well as the magnitude and extent of interest shortfalls, if any, on the certificates.
For additional details, please see the COMM 2013-LC13 March 2024 Surveillance Press Release linked below.
To access rating and relevant documents, click here.