Moody’s rates 6 Classes of CGCMT 2013
Global rating agency Moody’s assigned provisional ratings to six classes of commercial mortgage backed securities, issued by Citigroup Commercial Mortgage Trust 2013-SMP Commercial Mortgage Pass- Through Certificates, Series 2013-SMP.
The Certificates are collateralized by a single loan backed by a first lien commercial mortgage related to one regional mall. The borrower underlying the mortgage is a special-purpose entity (SPE), Macerich SMP LP.
Moody’s rating approach for securities backed by a single loan compares the credit risk inherent in the underlying property with the credit pro- tection offered by the structure. The structure’s credit enhancement is quantified by the maximum deterioration in property value that the securities are able to withstand under various stress scenarios without causing an increase in the expected loss for various rating levels. In assigning single borrower ratings, Moody’s also considers a range of qualitative issues as well as the transaction’s structural and legal aspects.
The loan is collateralized by fee simple and leasehold interests in the 519,593 SF Santa Monica Place regional Mall which is located in Santa Monica, CA. The center was originally constructed in 1972 as an enclosed mall but was substantially redeveloped to its current position in 2010. The property is anchored by Nordstrom and Bloomingdale’s with both anchors leasing their respective space from the Borrower. However, Nordstrom owns its improvements during the term of its lease, with ownership of their improvements reverting back to the Borrower upon lease expiration.
The collateral also includes two parking garages and approximately 1,800 SF of certain non- mall retail space operating under long term leases and a revenue sharing agreement between the Borrower and The City of Santa Monica that are both scheduled to expire on December 22, 2077 with no renewal options.