DBRS Confirms All Ratings of GS Mortgage Securities Trust 2013-GC10

DBRS has today confirmed all ratings of GS Mortgage Securities Trust 2013-GC10 as follows:

--Classes A-1, A-2, A-3, A-4, A-5, A-AB, A-2, X-A and X-B 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)

The trend on all classes is Stable.

The pool consists of 61 loans secured by 93 properties. As of the December 2013 remittance, all of the original 61 loans remain in the pool and the transaction has experienced collateral reduction of 1.0% as a result of amortization. The pool benefits from a relatively strong refinance outlook with a weighted-average debt yield and weighted-average DBRS refinance debt service coverage ratio of 11.42% and 1.36x, respectively, as of the December 2013 remittance. Additionally, 14.1% of the pool amortizes on a schedule of 27.5 years or less. As of the December 2013 remittance, the average remaining amortization term for these loans was 23.4 years.

As of the December 2013 remittance, two loans were on the servicer’s watchlist. Combined, these loans represent 0.90% of the pool balance. The largest of these loans is Burns & Wilcox Center (Prospectus ID# 42, 0.58% of the pool balance). This loan is secured by an office property in San Diego, California. It was placed on the watchlist because the largest tenant’s lease, City of San Diego, representing 34% of the net rentable area, expires in May 2014. The tenant has two three-year renewal options available with four months’ notice. The loan required the sponsor to either personally guarantee or provide a letter of credit in the amount of $500,000 to cover potential leasing costs at the property. DBRS has followed up with the servicer for an update on the status of the lease.

The other loan on the servicer’s watchlist was flagged for deferred maintenance at the property, which DBRS does not consider likely to have a material impact on the property performance.

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 January 2014 Monthly 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.

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.

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