DBRS Confirms Ratings of GS Mortgage Securities Trust, Series 2011-GC3

DBRS has today confirmed the ratings of GS Mortgage Securities Trust, Series 2011-GC3 as follows:

-- 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 B at AA (high) (sf)
-- Class C at A (high) (sf)
-- Class D at BBB (sf)
-- Class E at BB (sf)
-- Class F at B (sf)
-- Class X at AAA (sf)

All trends are Stable. DBRS does not rate the first lost piece, Class G.

The confirmations reflect the pool’s expected performance. Overall, the loans in the pool have reported stable performance since issuance, with a weighted-average debt service coverage ratio (DSCR) of 1.77x and a weighted-average loan-to-value ratio (LTV) of 58.6%. Credit enhancement to the bonds has increased from a collateral reduction of approximately 2.82% since issuance. As of the February 2013 remittance report, the pool has a balance of approximately $1.36 billion, with the collateral consisting of 56 loans secured by 110 properties. The transaction also benefits from loans structured with significant amortization, as 12.3% of the pool amortizes down by maturity.

At issuance, DBRS shadow-rated two loans, representing 5.85% of the current pool balance, as investment grade. DBRS today confirmed that the performance of the loans remains consistent with investment-grade loan characteristics.

As of the February 2013 remittance report, there are five loans on the servicer’s watchlist, representing 11.46% of the pool. All five loans remain current and are being monitored for one of the following property-specific issues: low DSCR, upcoming tenant lease expirations and minor deferred maintenance. The DBRS analysis included an in-depth review of these five watchlist loans as well as the top 15 loans and the shadow-rated loans, which represents approximately 71.8% of the current pool balance.

DBRS continues to monitor this transaction in its Monthly CMBS Surveillance Report, with additional information on the DBRS viewpoint for this transaction, including details on the largest loans in the pool and loans on the servicer’s watchlist. The February 2013 Monthly Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

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

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are CMBS Rating Methodology (January 2012) and CMBS North American Surveillance Methodology (November 2012), which can be found on our website under Methodologies.