(The following statement was released by the rating agency)
CHICAGO, January 14 (Fitch) Fitch Ratings has affirmed Institutional Mortgage
Capital, LP's (IMSCI) commercial mortgage pass-through certificates, series
2013-3. A detailed list of rating actions follows at the end of this release.
All currencies are in Canadian dollars (CAD).
The certificates represent the beneficial ownership in the trust, primary assets
of which are 35 loans secured by 40 Canadian commercial properties. The loans
were contributed to the trust by Institutional Mortgage Capital, LP.
KEY RATING DRIVERS
The affirmations are based on the stable performance of the underlying
collateral pool since issuance. As of the January 2016 remittance, the pool has
had no delinquent or specially serviced loans. The pool's aggregate principal
balance has been paid down by approximately 10.5% since issuance. There are no
partial or full-term interest-only loans in the pool. Approximately 90.3% of the
pool has full or partial recourse to the loans' borrowers and sponsors.
Given the current low price of oil and the dependence of Alberta on the oil
industry, Fitch is cognizant of the potential risks real estate in Alberta may
have. The pool has seven loans located in Alberta, representing 18.9% of the
pool. However, the six largest of the seven loans have full or partial recourse
to the guarantors and/or sponsors; the other loan is part of a crossed U-Haul
self-storage portfolio. The three Fort McMurray multifamily properties (8.8% of
the pool), which are not crossed, have institutional REIT sponsorship. The two
Calgary office properties have granular tenancy.
The largest loan of the pool (10.8% of the pool balance) is secured by a 362,577
square foot (sf) enclosed shopping center located in Dollard-des-Ormeaux
(Montreal), Quebec. The property is anchored by Canadian Tire and Super C
grocery. The pari passu loan is full recourse to the borrowing entity and its
owner and is partial recourse to the sponsor.
The second largest loan (9.1%) is secured by the Merivale Mall, a 225,082 square
foot (sf) enclosed shopping center located in Ottawa, Ontario. The property,
which was built in 1977 and renovated in 1994, is anchored by Farm Boy and Sport
Chek. The pari passu loan is full recourse to the borrowing entity and partial
recourse to the sponsor. Discount retailer Marshalls opened in 2015.
The third largest loan (8.8%) is the Shoppers Drug Mart Portfolio which consists
of eight cross-collateralized and cross-defaulted loans. Each loan is secured by
a retail property fully leased by Shoppers Drug Mart. The portfolio consists of
141,093 sf and is located across Ontario in Ottawa, London, and Windsor. Lease
expirations for the portfolio range from 2021 to 2031.
RATING SENSITIVITIES
Although all rated classes maintain Stable Outlooks, Fitch will continue to
monitor the properties exposed to the energy sector in addition to reviewing the
year-end 2015 reporting when provided by the servicer.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating
action.
Fitch has affirmed the following ratings:
--$11.1 million class A-1 at 'AAAsf'; Outlook Stable;
--$96.4 million class A-2 at 'AAAsf'; Outlook Stable;
--$81.6 million class A-3 at 'AAAsf'; Outlook Stable;
--$5.3 million class B at 'AAsf'; Outlook Stable;
--$8.5 million class C at 'Asf'; Outlook Stable;
--$6.9 million class D at 'BBBsf'; Outlook Stable;
--$3.8 million class E at 'BBB-sf'; Outlook Stable;
--$3.1 million class F at 'BBsf'; Outlook Stable;
--$2.5 million class G at 'Bsf'; Outlook Stable.
Fitch does not rate the $5 million class H and the interest-only class X.
Contact:
Primary Analyst
Jeffrey Diliberto
Director
+1-312-368-3268
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278, Email:
sandro.scenga@fitchratings.com.
Additional information is available at www.fitchratings.com
Applicable Criteria
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952
U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC
Criteria (pub. 13 Nov 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395
Related Research
IMSCI 2013-3 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=703959
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr
_id=997901
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=997901
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&det
ail=31
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