KBRA Downgrades Two Ratings to D (sf) Following Realization of Principal Losses and Withdraws One Rating for JPMCC 2013-C10
6 Aug 2026 | New York
KBRA downgrades the ratings of the Class E and F certificates to D (sf) from CCC (sf) and CC (sf), respectively, for JPMCC 2013-C10, a $43.3 million CMBS conduit transaction, following realized losses incurred from the resolution of the Gateway Center asset ($112.0 million loan balance at issuance) as reflected in the July 2026 remittance report. The asset consists of a 743,945 sf portion of a 1.5 million sf four-building office complex located in the Pittsburgh, Pennsylvania CBD. The loan was liquidated and proceeds totaling $37.4 million were allocated to the trust; liquidation expenses totaled $10.4 million, resulting in a loss of $64.8 million (57.9% loss severity of original balance), all of which was applied to the transaction’s remaining certificate balance.
According to the July 2026 remittance report, cumulative principal losses on the transaction totaled $73.5 million. KBRA withdraws the BB+ (sf) rating on Class C after principal recoveries were distributed to it and reduced its balance to zero. The principal losses reduced Classes F and NR to zero and Class E was reduced to $14.4 million (47.5% of the original certificate balance).
KBRA's other outstanding ratings for the transaction are unchanged at this time.
Rating Sensitivities
Future rating actions will be dependent upon the ongoing assessment of the timing and likelihood of ultimate payment of principal and accrued interest on the rated certificates. 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.
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