DBRS Confirms Ratings of Goldman Sachs Mortgage Securities Trust 2014-GC22

DBRS Limited (DBRS) has today confirmed all classes of Goldman Sachs Mortgage Securities Trust 2014-GC22 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 A-5 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 X-C at AAA (sf)
-- Class X-D at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (high) (sf)
-- Class PEZ at A (high) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (sf)

All trends are Stable. DBRS does not rate the first loss piece, Class G. The Class A-S, Class B and Class C certificates may be exchanged for the Class PEZ certificates (and vice versa).

The rating confirmations reflect that the current performance of the transaction remains in line with DBRS expectations at issuance in June 2014. The collateral consists of 59 loans secured by 113 commercial properties. As of the March 2015 remittance report, the pool has a balance of $957.5 million, representing a collateral reduction of 0.4% since issuance as a result of scheduled loan amortization. The transaction benefits from geographic diversity, with no state representing more than 11.7% of the pool. The pool is also concentrated by loan size, with the ten largest loans representing 58.5% of the total deal balance. Additionally, the three largest loans are interest only for the full loan term. The weighted-average DBRS Term DSCR for the Top 15 is 1.70x on an amortizing basis and based on the whole loan balance.

As of the March 2015 remittance report, there is one loan on the servicer’s watchlist, representing 10.4% of the current pool balance. The second-largest loan, Selig Portfolio (Prospectus ID #2), is on the watchlist due to the YE2014 DSCR having declined to 1.19x. The DBRS UW DSCR was 1.88x. The collateral comprises a portfolio of seven Class A and B office buildings located in the Seattle, Washington MSA. The DSCR was 1.19x, compared to DBRS UW DSCR of 1.88x, which took into account rent steps and any “must-take” space through YE2014. The low DSCR is attributed to a previously vacant property that was leased to Amazon in September 2014. DBRS was aware of the pending lease at issuance. The property is now fully occupied, with Amazon representing 17.6% of the portfolio NRA, the largest tenant among the collateral properties, and DBRS expects the cash flow to improve as rental revenue stabilizes through the upcoming 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. The March 2015 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.

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

The applicable methodologies are North American CMBS Rating Methodology (March 2015) and CMBS North American Surveillance (January 2015), which can be found on our website under Methodologies.