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Rating Action: Moody's affirms nine classes of MSBAM 2013-C13Global Credit Research - 03 Mar 2021Approximately $684.8 million of structured securities affectedNew York, March 03, 2021 -- Moody's Investors Service, ("Moody's") has affirmed the ratings on nine classes in Morgan Stanley Bank of America Merrill Lynch Trust 2013-C13 ("MSBAM 2013-C13"), Commercial Mortgage Pass-Through Certificates, Series 2013-C13 as follows:Cl. A-SB, Affirmed Aaa (sf); previously on November 18, 2019 Affirmed Aaa (sf)Cl. A-3, Affirmed Aaa (sf); previously on November 18, 2019 Affirmed Aaa (sf)Cl. A-4, Affirmed Aaa (sf); previously on November 18, 2019 Affirmed Aaa (sf)Cl. A-S, Affirmed Aaa (sf); previously on November 18, 2019 Affirmed Aaa (sf)Cl. B, Affirmed Aa3 (sf); previously on November 18, 2019 Affirmed Aa3 (sf)Cl. C, Affirmed A3 (sf); previously on November 18, 2019 Affirmed A3 (sf)Cl. X-A*, Affirmed Aaa (sf); previously on November 18, 2019 Affirmed Aaa (sf)Cl. X-B*, Affirmed Aa3 (sf); previously on November 18, 2019 Affirmed Aa3 (sf)Cl. PST**, Affirmed A1 (sf); previously on November 18, 2019 Affirmed A1 (sf)* Reflects Interest-Only Classes** Reflects Exchangeable ClassesRATINGS RATIONALEThe ratings on the six principal and interest (P&I) classes were affirmed due to the credit support and because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges.The ratings on the two interest-only (IO) classes were affirmed based on the credit quality of the referenced classes.The rating on Class PST was affirmed due to the credit quality of the referenced exchangeable classes.The coronavirus outbreak, the government measures put in place to contain it, and the weak global economic outlook continue to disrupt economies and credit markets across sectors and regions. Our analysis has considered the effect on the performance of commercial real estate from the current weak US economic activity and a gradual recovery for the coming months. Although an economic recovery is underway, it is tenuous and its continuation will be closely tied to containment of the virus. As a result, the degree of uncertainty around our forecasts is unusually high. Stress on commercial real estate properties will be most directly stemming from declines in hotel occupancies (particularly related to conference or other group attendance) and declines in foot traffic and sales for non-essential items at retail properties.We regard the coronavirus outbreak as a social risk under our ESG framework, given the substantial implications for public health and safety.Moody's rating action reflects a base expected loss of 6.0% of the current pooled balance, compared to 2.3% at Moody's last review. Moody's base expected loss plus realized losses is now 4.8% of the original pooled balance, compared to 2.0% at the last review. Moody's provides a current list of base expected losses for conduit and fusion CMBS transactions on moodys.com at http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF215255.FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS:The performance expectations for a given variable indicate Moody's forward-looking view of the likely range of performance over the medium term. Performance that falls outside the given range can indicate that the collateral's credit quality is stronger or weaker than Moody's had previously expected.Factors that could lead to an upgrade of the ratings include a significant amount of loan paydowns or amortization, an increase in the pool's share of defeasance or an improvement in pool performance.Factors that could lead to a downgrade of the ratings include a decline in the performance of the pool, loan concentration, an increase in realized and expected losses from specially serviced and troubled loans or interest shortfalls.METHODOLOGY UNDERLYING THE RATING ACTION The methodologies used in rating all classes except exchangeable classes and interest-only classes were "Approach to Rating US and Canadian Conduit/Fusion CMBS" published in September 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1244778 and "Moody's Approach to Rating Large Loan and Single Asset/Single Borrower CMBS" published in September 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1190579. The principal methodology used in rating exchangeable classes was "Moody's Approach to Rating Repackaged Securities" published in June 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1230078. The methodologies used in rating interest-only classes were "Approach to Rating US and Canadian Conduit/Fusion CMBS" published in September 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1244778, "Moody's Approach to Rating Large Loan and Single Asset/Single Borrower CMBS" published in September 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1190579, and "Moody's Approach to Rating Structured Finance Interest-Only (IO) Securities" published in February 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1111179. Please see the list of ratings at the top of this announcement to identify which classes are interest-only (indicated by the *) and exchangeable classes (indicated by the **). Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies. DEAL PERFORMANCEAs of the February 18, 2021 distribution date, the transaction's aggregate certificate balance has decreased by 19% to $806.7 million from $995.3 million at securitization. The certificates are collateralized by 54 mortgage loans ranging in size from less than 1% to 16% of the pool, with the top ten loans (excluding defeasance) constituting 55% of the pool. Four loans, constituting 5% of the pool, have defeased and are secured by US government securities.Moody's uses a variation of Herf to measure the diversity of loan sizes, where a higher number represents greater diversity. Loan concentration has an important bearing on potential rating volatility, including the risk of multiple notch downgrades under adverse circumstances. The credit neutral Herf score is 40. The pool has a Herf of 15, compared to 16 at Moody's last review.As of the February 2021 remittance report, loans representing 94% were current or within their grace period on their debt service payments, 3% were beyond their grace period but less than 30 days delinquent and 1% were greater than 90 days delinquent.Nine loans, constituting 27% of the pool, are on the master servicer's watchlist. The watchlist includes loans that meet certain portfolio review guidelines established as part of the CRE Finance Council (CREFC) monthly reporting package. As part of Moody's ongoing monitoring of a transaction, the agency reviews the watchlist to assess which loans have material issues that could affect performance.No loans have been liquidated from the pool. Five loans, constituting 10% of the pool, are currently in special servicing. Three of the specially serviced loans, representing 8% of the pool, have transferred to special servicing since May 2020.The largest specially serviced loan is the Residence Inn by Marriott Philadelphia Loan ($40.0 million -- 5.0% of the pool), which is secured by a 290-room extended stay hotel located in the central business district of Philadelphia, Pennsylvania. Prior to 2020, property performance had generally improved since securitization due to increased revenue per available room (RevPAR). However, the property's performance was significantly impacted by the coronavirus pandemic and the loan transferred to special servicing in May 2020 due to imminent monetary default at the borrower's request. Through the first six months of 2020 the property did not generate enough cash flow to cover operating expenses. For the trailing twelve-months (TTM) ending September 2020, occupancy, ADR and RevPAR were 43.3%, $157.91 and $68.34, respectively, compared to 76.5%, $185.69 and $142.11 for the TTM ending September 2019. The special servicer indicated they are processing a PPP loan and the loan will be returned to the master servicer upon completion. As of February 2021, the loan is current on its debt service payments and the loan has amortized 11% since securitization. As a result of the property's historical performance and loan leverage, this loan is included in the conduit statistics with a Moody's LTV of 118%. However, these metrics are based on return of both leisure and group and meeting demand which may lag that of the overall US pace of recovery.The second largest specially serviced loan is the Northwest Crossing Centre Loan ($21.5 million -- 2.7% of the pool), which is secured by an anchored retail shopping center, located in Houston, Texas. The shopping center is comprised of three buildings and four pad sites, totaling 179,469 SF. The shopping center is currently anchored by Marshall's (30,425 SF, 17% of NRA) and Planet Fitness (26,670 SF, 15% of NRA), which backfilled a former Best Buy that vacated in March 2020. The center has one vacant major tenant, a former Big Lots (26,700 SF), which vacated after its lease expiration in 2017. As of the December 2020 rent roll, the property was 73% occupied, compared to 80% in December 2019 and 100% at securitization. The loan transferred to special servicing in November 2020 for imminent monetary default at borrower's request as a result of the coronavirus pandemic. The property's performance has declined in 2020 due to lower revenues and the September 2020 NOI DSCR was 1.07X compared to 1.38X in 2019. The special servicer indicated they are reaching out to the borrower to assess the borrower's request. The loan has amortized 8% since securitization and was less than one month delinquent as of the February 2021 remittance date.The third largest specially serviced loan is the 1200 Howard Blvd. Loan ($14.6 million -- 1.8% of the pool), which is secured by an 87,000 square foot, 3-story office building located within the Mount Laurel Corporate Park in Mount Laurel, NJ. The loan transferred to special servicing in April 2018 for a non-monetary default. The borrower completed a non-permitted equity transfer while in bankruptcy court and changed management without lender consent. The special servicer indicated they are currently pursuing foreclosure. The office building was 94% leased as of September 2020, compared to 92% leased as of August 2019. The property's financial performance had been stable through 2019 but revenue has declined through September 2020.The remaining two specially serviced loans each represent less than 1% of the pool and are secured primarily by retail properties. One loan is secured by a mixed-use property in Manhattan (0.6% of the pool) with ground floor retail and significant upcoming lease rollover and the other is secured by a vacant former Rite Aid in which the tenant will pay rent through its lease maturity in 2023.The credit risk of loans is determined primarily by two factors: 1) Moody's assessment of the probability of default, which is largely driven by each loan's DSCR, and 2) Moody's assessment of the severity of loss upon a default, which is largely driven by each loan's loan-to-value ratio, referred to as the Moody's LTV or MLTV. As described in the CMBS methodology used to rate this transaction, we make various adjustments to the MLTV. We adjust the MLTV for each loan using a value that reflects capitalization (cap) rates that are between our sustainable cap rates and market cap rates. We also use an adjusted loan balance that reflects each loan's amortization profile. The MLTV reported in this publication reflects the MLTV before the adjustments described in the methodology.Moody's received full year 2019 operating results for 100% of the pool, and full or partial year 2020 operating results for 88% of the pool (excluding specially serviced and defeased loans). Moody's weighted average conduit LTV is 96%, compared to 89% at Moody's last review. Moody's conduit component excludes loans with structured credit assessments, defeased and CTL loans, and specially serviced and troubled loans. Moody's net cash flow (NCF) reflects a weighted average haircut of 21% to the most recently available net operating income (NOI). Moody's value reflects a weighted average capitalization rate of 9.4%.Moody's actual and stressed conduit DSCRs are 1.53X and 1.11X, respectively, compared to 1.64X and 1.16X at the last review. Moody's actual DSCR is based on Moody's NCF and the loan's actual debt service. Moody's stressed DSCR is based on Moody's NCF and a 9.25% stress rate the agency applied to the loan balance.The top three conduit loans represent 34% of the pool balance. The largest loan is the Stonestown Galleria Loan ($125 million -- 15.5% off the pool), which represents a pari-passu portion of a $173.2 million senior mortgage. The loan is secured by a 586,000 SF portion of a regional shopping mall and anchored retail center in San Francisco, California. Nordstrom, a non-collateral anchor at securitization, vacated their space in September 2019. However, Target (currently 31,892 SF) subsequently signed a lease to take a portion of the Nordstrom space and will increase their space to approximately 90,000 SF. Two additional major tenants, Whole Foods and Regal Cinemas, are also scheduled to open in 2021. As of the September 2020 rent roll, the total property was 65% occupied, compared to 97% in June 2019 and 93% at securitization. Brookfield Properties is the loan sponsor and the property benefits from its location in a densely populated trade area and is located adjacent to San Francisco State University and two magnet high schools. The property's 2019 NOI was above expectations at securitization due to higher revenues, however, the property's performance has declined in 2020 as a result of the pandemic. The year-to-date September 2020 NOI DSCR was 1.45X and the special servicer approved the borrower's use of reserves to pay a portion of the October 2020 debt service. The loan began to amortize in 2018 and has amortized 3.4% since securitization. Moody's LTV and stressed DSCR are 101% and 0.91X, respectively, compared to 94% and 0.92X at the last review.The second largest loan is The Mall at Chestnut Hill Loan ($120.0 million -- 14.9% of the pool), which is secured by a 170,000 SF portion of a regional mall in Newton, Massachusetts. The mall is within two-mile radius of several schools including Boston College, Mount Ida College, Bentley University and Brandies University. The property features a mix of upscale retailers such as Bloomingdale's, Apple, Michael Kors and Tumi. The Bloomingdale's space is excluded from the collateral. As of September 2020, the mall was 94% leased, the same as in June 2019. The property's net operating income (NOI) has declined since 2017 due to lower revenues, however, performance remains above levels at securitization. The 2019 NOI was 7% lower than in 2017 but still 13% above the NOI in 2013. The loan is interest only throughout its entire term and had a 2.18X actual NOI DSCR in September 2020. The Moody's LTV and stressed DSCR are 110% and 0.82X, respectively, compared to 92% and 0.94X at the last review.The third largest loan is the Mart of Montebello Loan ($28.1 million -- 3.5% of the pool), which is secured by a 212,201 SF grocery-anchored retail center, located in Montebello, California, approximately 11 miles southeast of Los Angeles, California. Some of the notable tenants are Marshall's (33,500 SF, 16% of NRA with a lease expiration in January 2025), Ross Dress for Less (32,476 SF, 15% of NRA, lease expiration in January 2026) and Von's Grocery (31,152 SF, 15% of NRA, lease expiration in March 2022). As of September 2020, the property was 84% leased, compared to 89% in December 2019. Moody's LTV and stressed DSCR are 94% and 1.27X.REGULATORY DISCLOSURESFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.The analysis includes an assessment of collateral characteristics and performance to determine the expected collateral loss or a range of expected collateral losses or cash flows to the rated instruments. As a second step, Moody's estimates expected collateral losses or cash flows using a quantitative tool that takes into account credit enhancement, loss allocation and other structural features, to derive the expected loss for each rated instrument.Moody's did not use any stress scenario simulations in its analysis.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1243406.At least one ESG consideration was material to the credit rating action(s) announced and described above.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the UK and is endorsed by Moody's Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Suzanna Sava Vice President - Senior Analyst Structured Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. 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