DBRS Confirms Ratings of GS Mortgage Securities Trust, Series 2012-GCJ7

DBRS has today confirmed the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7, issued by GS Mortgage Securities Trust, 2012-GCJ7:

-- 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 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)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)

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

The collateral consists of 79 fixed-rate loans secured by 175 commercial properties. As of the May 2013 remittance report, the pool has a balance of approximately $1.61 billion, representing a collateral reduction of approximately 0.95% since issuance in June 2012. Overall, the loans in the pool have reported stable performance since issuance. The transaction also benefits from loans structured with significant amortization, as 14.3% of the pool amortizes down by maturity.

As of the May 2013 remittance report, there are four loans on the servicer’s watchlist, representing 4.2% of the current pool balance. These loans are current, but are being monitored for tenant rollover, property damage and/or a low DSCR.

The DBRS analysis included an in-depth review of the top 15 loans and loans on the servicer’s watchlist, which represents approximately 58.2% of the current pool balance. According to the most recent reporting, these loans had a weighted-average debt service coverage ratio (DSCR) of 1.55x and a weighted-average debt yield of 11.0%. While these figures represent overall stable performance, it is of note that only approximately 70.8% of the pool is reporting YE2012 financials. The remainder of the pool is reporting partial-year figures, which are being annualized by the servicer for the purposes of calculating the updated DSCR. As such, the figures are less reliable indicators of property performance than the true full-year figures, which should be available in the coming year.

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 May 2013 Monthly CMBS Surveillance Report for this transaction will be published shortly. If you are interested in receiving this report, contact us at info@dbrs.com.

Notes:
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.