DBRS Confirms Ratings of GS Mortgage Securities Trust 2010-C1

DBRS has today confirmed the ratings of GS Mortgage Securities Trust 2010-C1 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class B at AAA (sf)
-- Class C at AA (sf)
-- Class D at BBB (high) (sf)
-- Class E at BB (sf)
-- Class F at B (sf)
-- Class X at AAA (sf)

All trends are Stable.

The collateral for this transaction consists of 23 fixed-rate loans secured by 48 commercial properties. Overall, the loans in the pool have a reported stable performance since issuance, with a weighted-average debt service coverage ratio (DSCR) of 1.85x and a weighted-average debt yield of 14.22%. As of the August 2013 remittance report, the pool has a balance of $748 million, representing a collateral reduction of 5.1% since issuance.

Due to the limited number of loans, the pool is highly concentrated, with the five largest loans representing 50.4% of the current pool balance and the ten largest loans representing 76.8% of the current pool balance. Additionally, the transaction is concentrated by loans secured by retail properties, representing 79.3% of the current pool balance.

At issuance, DBRS shadow-rated 11 loans investment grade, representing 57.7% of the current balance. DBRS today has confirmed that the performance of the loans remains consistent with investment-grade loan characteristics.

As of the August 2013 remittance report, Pros ID #15 Canyon Point Marketplace, representing 1.93% of the current pool balance, is the only loan on the servicer’s watchlist. The loan is secured by a grocery-anchored shopping center in Rowland Heights, California, approximately 25 miles east of Los Angeles. The loan was added to the watchlist when the grocery store anchor vacated the property late in 2012, decreasing occupancy to 68.3% as of the June 2013 rent roll. As agreed per the terms of the lease agreement, the tenant will continue to pay rent until its lease expiration in March 2015. According to the servicer, the borrower is currently in close negotiations with two supermarkets to occupy the space. Despite the low occupancy, DSCR as at YE2012 remains strong at 1.55x.

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 remaining loans in the pool. The August 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.