Press Release

DBRS Assigns Provisional Ratings to GSMS 2012-GCJ7

CMBS
May 15, 2012

DBRS has today assigned provisional ratings to the following classes of Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7 to be issued by GSMS 2012-GCJ7 Mortgage Trust. The trends are Stable.

– Class A-1 at AAA (sf)
– Class A-2 at AAA (sf)
– Class A-3 at AAA (sf)
– Class A-4 at AAA (sf)
– Class A-AB at AAA (sf)
– Class A-S at AAA (sf)
– Class X-A at AAA (sf)
– Class X-B at AAA (sf)
– Class B at AA (sf)
– Class C at A (low) (sf)
– Class D at BBB (low) (sf)
– Class E at BB (sf)
– Class F at B (sf)

The collateral consists of 79 fixed-rate loans secured by 175 multifamily properties, mobile home parks and commercial properties. The portfolio has a balance of $1,623,228,182. The pool consists of relatively low-leverage financing, with a DBRS weighted-average term debt service coverage ratio (DSCR) and debt yield of 1.40 times (x) and 10.0%, respectively. The pool is well diversified by property type in comparison to other recent securitizations with retail, office and industrial properties each representing nearly 25.0% of the pool, and representing a combined total of 70.7% of the pool. Additionally, there are 11 portfolios in the transaction, representing 18.4% of the pool.

The pool has 27 loans, representing 18.5% of the pool, secured by non-traditional property types (hotels, MHC, self-storage, military housing and student housing).The additional risk brought on my non-traditional property types is mitigated by the fact that these loans feature stronger credit statistics than the overall pool, with an average DBRS Refi DSCR and Exit Debt Yield of 1.26x and 12.2%, respectively. Loans secured by hotel properties represent 39.8% of the non-traditional property exposure, and these loans were generally underwritten to recent performance levels which include periods from the most recent downturn within the hotel industry. A relatively high percentage of properties from the DBRS sample were classified as Below Average (10.3% of the Sample) or Poor (8.0% of the Sample), well above the respective figures for other recently rated DBRS conduit transactions. Properties with Below Average Quality would likely have more difficulty attracting and maintaining tenants at market rates than newer, more attractive competition. These loans were modeled with higher PODs to account for the increased risk with these assets. DBRS models each loan individually, however, it’s worth noting that the pool benefits from a reasonable number of properties DBRS considers to be Excellent or Above Average property quality, representing a combined 16.4% of the pool.

The ratings assigned to the Certificates by DBRS are based exclusively on the credit provided by the transaction structure and underlying trust assets. All classes will be subject to ongoing surveillance which could result in upgrades or downgrades by DBRS after the date of issuance.

Finalization of ratings is contingent upon receipt of final documents conforming to information already received.

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

Classes X-B, D, E, F, G, S and R are privately placed pursuant to Rule 144a.

The Class X-A and Class X-B balances are notional. DBRS ratings on interest-only certificates address the likelihood of receiving interest based on the notional amount outstanding. DBRS considers the interest-only certificate’s position within the transaction payment waterfall when determining the appropriate rating.

The applicable methodology is CMBS Rating Methodology, which can be found on our website under Methodologies.

Ratings

  • Date IssuedDebt RatedRatingTrendActionAttributesi
    15-May-12Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, Class A-1AAA (sf)StbProvis.-New
    US
    15-May-12Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, Class A-2AAA (sf)StbProvis.-New
    US
    15-May-12Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, Class A-3AAA (sf)StbProvis.-New
    US
    15-May-12Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, Class A-4AAA (sf)StbProvis.-New
    US
    15-May-12Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, Class A-ABAAA (sf)StbProvis.-New
    US
    15-May-12Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, Class A-SAAA (sf)StbProvis.-New
    US
    15-May-12Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, Class X-AAAA (sf)StbProvis.-New
    US
    15-May-12Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, Class X-BAAA (sf)StbProvis.-New
    US
    15-May-12Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, Class BAA (sf)StbProvis.-New
    US
    15-May-12Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, Class CA (low) (sf)StbProvis.-New
    US
    15-May-12Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, Class DBBB (low) (sf)StbProvis.-New
    US
    15-May-12Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, Class EBB (sf)StbProvis.-New
    US
    15-May-12Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, Class FB (sf)StbProvis.-New
    US
    More
    Less
GS Mortgage Securities Trust, Series 2012-GCJ7
  • Date Issued:May 15, 2012
  • Rating Action:Provis.-New
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:May 15, 2012
  • Rating Action:Provis.-New
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:May 15, 2012
  • Rating Action:Provis.-New
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:May 15, 2012
  • Rating Action:Provis.-New
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:May 15, 2012
  • Rating Action:Provis.-New
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:May 15, 2012
  • Rating Action:Provis.-New
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:May 15, 2012
  • Rating Action:Provis.-New
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:May 15, 2012
  • Rating Action:Provis.-New
  • Ratings:AAA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:May 15, 2012
  • Rating Action:Provis.-New
  • Ratings:AA (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:May 15, 2012
  • Rating Action:Provis.-New
  • Ratings:A (low) (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:May 15, 2012
  • Rating Action:Provis.-New
  • Ratings:BBB (low) (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:May 15, 2012
  • Rating Action:Provis.-New
  • Ratings:BB (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • Date Issued:May 15, 2012
  • Rating Action:Provis.-New
  • Ratings:B (sf)
  • Trend:Stb
  • Rating Recovery:
  • Issued:US
  • US = Lead Analyst based in USA
  • CA = Lead Analyst based in Canada
  • EU = Lead Analyst based in EU
  • UK = Lead Analyst based in UK
  • E = EU endorsed
  • U = UK endorsed
  • Unsolicited Participating With Access
  • Unsolicited Participating Without Access
  • Unsolicited Non-participating

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