Fitch Ratings has downgraded seven and affirmed four classes of WFRBS Commercial Mortgage Trust (WFRBS) Commercial Mortgage Pass-Through Certificates, Series 2013-C15.

RATING ACTIONSENTITY/DEBT	RATING		PRIOR

WFRBS 2013-C15

A-3 92938CAC1

LT	AAAsf 	Affirmed		AAAsf

A-4 92938CAD9

LT	AAAsf 	Affirmed		AAAsf

A-S 92938CAF4

LT	Asf 	Downgrade		AAAsf

A-SB 92938CAE7

LT	AAAsf 	Affirmed		AAAsf

B 92938CAH0

LT	BBBsf 	Downgrade		Asf

C 92938CAJ6

LT	CCCsf 	Downgrade		BBsf

D 92938CAL1

LT	CCsf 	Downgrade		CCCsf

E 92938CAN7

LT	Csf 	Downgrade		CCsf

F 92938CAQ0

LT	Csf 	Affirmed		Csf

PEX 92938CAK3

LT	CCCsf 	Downgrade		BBsf

X-A 92938CAG2

LT	Asf 	Downgrade		AAAsf

VIEW ADDITIONAL RATING DETAILS

KEY RATING DRIVERS

Increased Loss Expectations: The downgrades and Negative Outlooks reflect higher loss expectations since Fitch's last rating action on two regional mall loans, Augusta Mall and Carolina Place (combined 24.5% of pool), driven by continued performance deterioration and increased refinance risk.

Fitch's current ratings reflect a base case loss for the pool of 16.1%. The Negative Outlooks reflect losses that could reach 17.4% after factoring additional pandemic-related stresses.

There are 11 Fitch Loans of Concern (FLOCs; 54.4%), including three specially serviced loans (11.6%). In addition to Augusta Mall and Carolina Place, the pool's regional mall concentration also includes the specially serviced Kitsap Mall loan (9.8%).

Fitch's base loss expectation on the Augusta Mall loan (14.4%), which is secured by a 500,222sf collateral portion of a 1.1 million sf regional mall in Augusta, GA, increased to 13% from 3% at the last rating action. Fitch's loss reflects a 12% cap rate and 15% haircut to the YE 2020 NOI. Fitch also ran an additional coronavirus sensitivity utilizing a 15% cap rate and a 15% haircut to YE 2020 NOI, which brought the loss to 20%.

The loan, which is sponsored by Brookfield Properties Retail Group, matures in August 2023. Noncollateral anchors are Dillard's, JCPenney and Macy's, and include a vacant former Sears box. The largest collateral tenants are Dick's Sporting Goods (12.4% of NRA; through January 2023), Barnes & Noble (5.8%; January 2024), H&M (4.6%; January 2025), Forever 21 (3.2%; January 2023) and Apple (2.6%, December 2021). The subject is the only regional mall within its trade area.

Per the December 2020 rent roll, collateral occupancy dropped to 89.7% from 92.0% at YE 2019. The servicer-reported NOI debt service coverage ratio (DSCR) fell to 3.62x as of YE 2020 from 3.86x at YE 2019 and 4.11x at YE 2018. YE 2020 inline sales, which were affected by the pandemic, declined to $341 psf ($318 psf, excluding Apple) from $514 psf ($434 psf) at YE 2019 and $482 psf ($421 psf) at YE 2018.

Fitch's base loss expectation on the Carolina Place loan (10.1%), which is secured by a 693,196sf collateral portion of a 1.2 million sf regional mall in Pineville, NC, approximately 10 miles southwest of the Charlotte CBD, increased to 54% from 40% at the last rating action. Fitch's loss reflects a 20% cap rate to the YE 2020 NOI.

The loan, which is sponsored by a joint venture between Brookfield and the New York State Common Retirement Fund, was designated a FLOC due to significant lease rollover concerns prior to its June 2023 maturity, declining occupancy and sales since issuance, limited leasing progress on the vacant anchor space formerly occupied by Sears and significant market competition.

The remaining collateral anchor JCPenney (17% NRA) recently extended its lease for two years through May 2023. The noncollateral anchors are Dillard's and Belk. In 2019, Dick's Sporting Goods and Golf Galaxy began leasing a noncollateral anchor box formerly occupied by Macy's. Collateral occupancy and servicer-reported NOI DSCR were 73% and 1.48x, respectively, at YE 2020. Near-term rollover includes 5.8% NRA in 2021 and 14.2% in 2022. In-line tenant sales were $335 psf as of YE 2020 down from $411 at YE 2019. The loan has remained current since issuance, and the borrower has not requested coronavirus relief to date.

While loss expectations on the specially serviced Kitsap Mall loan (9.8%), which is secured by a 579,894sf collateral portion of a 761,840sf regional mall in Silverdale, WA, remain relatively unchanged since the last rating action, this loan is the second largest contributor to overall loss expectations for the pool. Fitch's base case loss expectation on this loan of approximately 60% factors in a discount to a recent appraisal valuation and reflects an implied cap rate of 18% to the YE 2019 NOI.

The loan transferred to special servicing in May 2020 due to imminent default. The sponsor, Starwood Capital Group, indicated their intent to convey title to the trust. Per the servicer, a receiver was appointed in August 2020 and foreclosure is scheduled for August 2021.

Collateral anchors include JCPenney (27.1% of collateral NRA; lease through August 2023) and Macy's (20.9%; January 2024). Kohl's is the sole noncollateral tenant after Sears closed in October 2019. Per the servicer, collateral occupancy decreased to 92.6% as of January 2021 from 96% as of YE 2019. The most recent available in-line sales as of YE 2019 increased to $458 psf from $406 psf in 2018, $430 psf in 2017 and $389 psf at issuance. Macy's sales declined to $121 psf at YE 2019 from $123 psf at YE 2018, $133 psf at YE 2017 and $184 psf at issuance.

Increased Credit Enhancement (CE): As of the May 2021 distribution date, the pool's aggregate principal balance has been paid down by 31% to $763.5 million from $1.107 billion at issuance. Since issuance, 17 loans (21.5% of the original pool balance) have been paid off or disposed, including two loans since the prior rating action. Realized losses to date total $20.4 million (1.8%) following the dispositions of the REO Holiday Inn Express & Suites - Sydney and Cleveland Airport Marriott assets in July 2019 and July 2020, respectively. Sixteen loans (12.1% of the current pool balance) are fully defeased.

Three loans (15.1%) are full-term interest only, including the largest loan in the pool; all other remaining loans (84.9%) are currently amortizing. Loan maturities are concentrated in 2023 (97.6%), with one loan maturing in 2021 (1.1%) and two loans in 2028 (1.2%).

Coronavirus Exposure: Six loans (17.9%) are secured by hotel properties and 16 loans (45.8%) are secured by retail properties, including three regional malls (34.3%) in the top five loans. Fitch applied additional stresses to two hotel loans and four retail loans to account for potential cash flow disruptions due to the coronavirus pandemic; these additional stresses contributed to the Negative Rating Outlooks.

Alternative Loss Consideration: Fitch considered an additional scenario in addition to its base case scenario, where only the three regional mall loans remain in the pool. Classes A-S through F are reliant on proceeds from regional mall loans for repayment. This scenario contributed to the Negative Rating Outlooks.

RATING SENSITIVITIES

The Negative Rating Outlooks reflect the potential for downgrade due to concerns surrounding the ultimate impact of the coronavirus pandemic and performance concerns associated with the FLOCs, primarily the regional mall loans. The Stable Rating Outlooks reflect the increased CE from paydowns and defeasance and continued expected amortization.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

Sensitivity factors that lead to upgrades would include stable to improved asset performance coupled with pay down and/or defeasance.

Upgrades to classes A-S, B and X-A are not likely due to continued performance and refinance concerns with the regional mall loans, but could occur if performance stabilizes and/or any of these loans or the specially serviced assets are resolved with better recoveries than expected. Classes would not be upgraded above 'Asf' if there is likelihood for interest shortfalls.

Upgrades to the 'Csf', 'CCsf' and 'CCCsf' categories are unlikely absent significant performance improvement on the FLOCs and substantially higher recoveries than expected on the regional mall FLOCs and specially serviced assets.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

Sensitivity factors that lead to downgrades include an increase in pool-level losses from underperforming or specially serviced loans.

Downgrades to classes A-3, A-4 and A-SB are not considered likely due to their position in the capital structure, but may occur if interest shortfalls affect these classes. These classes are not reliant on regional mall loans to pay in full.

Downgrades to classes A-S, B and X-A may occur if expected losses for the pool increase substantially from continued performance deterioration of the regional mall loans or with greater losses than expected and/or all of the loans susceptible to the coronavirus pandemic suffer losses.

Further downgrades of the 'Csf', 'CCsf' and 'CCCsf' rated classes would occur with increased certainty of losses or as losses are realized.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG CONSIDERATIONS

WFRBS 2013-C15 has an ESG Relevance Score of '4' for Exposure to Social Impacts due to significantly high retail exposure, including three underperforming regional malls as a result of changing consumer preferences in shopping, which has a negative impact on the credit profile, and is highly relevant to the ratings in conjunction with other factors.

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.

Additional information is available on www.fitchratings.com

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