DBRS Morningstar Upgrades Two Classes and Confirms Remaining Classes of FREMF 2013-K33 Mortgage Trust, Series 2013-K33

DBRS Limited (DBRS Morningstar) upgraded the ratings on two classes of the Multifamily Mortgage Pass-Through Certificates, Series 2013-K33 issued by FREMF 2013-K33 Mortgage Trust, Series 2013-K33 as follows:

-- Class X2-B to AAA (sf) from AA (high) (sf)
-- Class C to AAA (sf) from AA (sf)

DBRS Morningstar also confirmed the ratings on the remaining classes as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class B at AAA (sf)
-- Class X1 at AAA (sf)
-- Class X2-A at AAA (sf)

DBRS Morningstar also changed the trends on Class X2-B and Class C to Stable from Positive. The trends on the remaining classes are Stable.

The rating upgrades reflect the positive developments for the transaction, which include a significant uptick in defeased loans in the last year. As of the December 2021 remittance, all original 86 loans remained in the pool with a total collateral reduction of 10.9% since issuance because of loan amortization. Defeased loans represent 50.9% of the pool (50 loans), with nearly half of those defeased in the last year (21 loans, 21.3% of the pool). There are no loans in special servicing and seven loans on the servicer’s watchlist, representing 9.5% of the current pool balance. The watchlisted loans are being monitored for a variety of reasons including deferred maintenance items and declines in occupancy rates and/or revenues; however, the vast majority of these loans reported healthy debt service coverage ratios (DSCRs). Based on the most recent financials, the pool reported a weighted-average DSCR of 1.74 times (x), compared with the issuance DSCR of 1.60x.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

Classes X1, X2-A, and X2-B are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.

All ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.

The DBRS Viewpoint platform provides additional information on this transaction and underlying loans including DBRS Morningstar metrics, commentary, servicer-reported cash flows, and other performance-related data.

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com. The platform includes issuer and servicer data for most outstanding CMBS transactions (including non-DBRS Morningstar rated), as well as loan-level and transaction-level commentary for most DBRS Morningstar-rated and -monitored transactions.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is North American CMBS Surveillance Methodology (March 26, 2021), which can be found on dbrsmorningstar.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Morningstar Global Structured Finance Related Methodologies document, which can be found on dbrsmorningstar.com in the Commentary tab under Regulatory Affairs. Please note that not every related methodology listed under a principal structured finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrsmorningstar.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577