Commercial Real Estate Direct Staff Report
Kroll Bond Rating Agency has downgraded the two lowest rated bond classes of COMM, 2013-CCRE7, because of the deal's large exposure to loans that have defaulted or that the rating agency considers to be at a heightened risk of default.
It downgraded the deal's $9.4 million class F to BB- from BB and its $17.6 million class G to B- from B. It affirmed all other classes.
The deal's collateral pool includes only one loan that's delinquent - the $13.2 million North Dakota Portfolio mortgage - and another, the $48.2 million One West Fourth Street loan, that's in special servicing. The former is expected to suffer a loss of 58.6 percent, while the latter a 9 percent loss, according to Kroll's analysis.
The CMBS transaction is the...
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