Fitch Ratings has affirmed 12 classes of
RATING ACTIONS
ENTITY/DEBT RATING PRIOR
MSBAM 2013-C8
A-3 61761QAD5
LT AAAsf Affirmed AAAsf
A-4 61761QAE3
LT AAAsf Affirmed AAAsf
A-S 61761QAG8
LT AAAsf Affirmed AAAsf
ASB 61761QAC7
LT AAAsf Affirmed AAAsf
B 61761QAH6
LT AA-sf Affirmed AA-sf
C 61761QAK9
LT A-sf Affirmed A-sf
D 61761QAN3
LT BBB-sf Affirmed BBB-sf
E 61761QAQ6
LT BBsf Affirmed BBsf
F 61761QAS2
LT Bsf Affirmed Bsf
PST 61761QAJ2
LT A-sf Affirmed A-sf
X-A 61761QAF0
LT AAAsf Affirmed AAAsf
X-B 61761QAL7
LT AA-sf Affirmed AA-sf
VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Slight Increase in Loss Expectations: While the majority of the pool maintains stable performance, loss expectations on the pool have increased over the last year primarily due to the eight Fitch Loans of Concern (FLOCs; 12.3% of the pool), including four specially serviced loans (8%), as well as concerns over the overall impact of the coronavirus pandemic on the pool.
Increased Credit Enhancement: As of the
Fitch Loans of Concern: Eight loans (12.3%) have been designated as a FLOCs. The largest FLOC is the specially serviced Kingsgate Center loan (3.9%), which is secured by a mixed-use property located in
The next largest FLOC is the
The next largest FLOC is the
The next largest FLOC is the One Concourse loan (1.56%), which is secured by a 110,167-sf suburban office property located in
The remaining four FLOCs (2.6% combined) consist of loans secured by a hotel located in
Coronavirus: Fitch expects significant economic impacts to certain hotels, retail and multifamily properties from the coronavirus pandemic due to the related reductions in travel and tourism, temporary property closures and lack of clarity at this time on the potential duration of the impacts. Loans collateralized by retail properties and mixed-use properties with a retail component account for 17 loans (40.3% of pool). Loans secured by hotel properties account for four loans (6.3%), while one loan (0.5%) is secured by a multifamily property. Fitch's base case analysis applied additional stresses to five retail loans and one hotel loan due to their vulnerability to the coronavirus pandemic; this contributed to maintaining the Negative Outlook on class F.
RATING SENSITIVITIES
The Stable Outlooks reflect the class' sufficient credit enhancement relative to expected losses as well as the stable performance of the majority of the pool and expected continued amortization. The Negative Outlook on class F reflects concerns over the FLOCs as well as the unknown impact of the pandemic on the overall pool.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Upgrades to classes B and C would likely occur with significant improvement in credit enhancement and/or defeasance; however, adverse selection and increased concentrations, or the underperformance of the FLOCs, could reverse this trend. An upgrade to class D is considered unlikely and would be limited based on sensitivity to concentrations or the potential for future concentration. Classes would not be upgraded above 'Asf' if there were likelihood for interest shortfalls. An upgrade to classes E and F is not likely until the later years in a transaction and only if the performance of the remaining pool is stable and/or properties vulnerable to the coronavirus return to pre-pandemic levels, and there is sufficient credit enhancement to the classes.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Downgrades to classes A-1 through B are not likely due to their position in the capital structure and the high credit enhancement; however, downgrades to these classes may occur should interest shortfalls occur. Downgrades to class C would occur if loss expectations increase significantly and/or credit enhancement be eroded. Downgrades to the classes rated 'BBB-sf', 'BB-sf', or 'B-sf' would occur if the performance of the FLOC continues to decline and/or fail to stabilize, or should losses from specially serviced loans/assets be larger than expected.
In addition to its baseline scenario, Fitch envisions a downside scenario where the health crisis is prolonged beyond 2021; should this scenario play out, Fitch expects that classes assigned a Negative Outlook will be downgraded one or more categories and additional classes may be downgraded or have their Outlooks revised to Negative.
For more information on Fitch's original rating sensitivity on the transaction, please refer to the new issuance report on www.fitchratings.com.
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
No third-party due diligence was provided or reviewed 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
MSBAM 2013-C8: Exposure to Social Impacts: 4
Except for the matters discussed above, the highest level of ESG credit relevance, if present, is a score of 3 - 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.
Additional information is available on www.fitchratings.com
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