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

DBRS Limited (DBRS) has today confirmed all classes of Commercial Mortgage Pass-Through Certificates issued by GS Mortgage Securities Trust 2013-GC10 as follows:

--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 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)

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

The rating confirmations reflect the overall performance of the transaction. At issuance, the transaction consisted of 61 loans secured by 93 commercial and multifamily properties. The pool has since experienced a collateral reduction of 7.4% as a result of scheduled amortization and the prepayment of one loan. The pool also benefits from defeasance collateral as four loans, representing 5.4% of the current pool balance, are fully defeased. Based on YE2015 financials, the pool reported a weighted-average (WA) debt service coverage ratio (DSCR) of 1.73 times (x) and a WA debt yield of 10.9%. Comparatively, the YE2014 WA DSCR and WA debt yield were 1.58x and 9.9%, respectively.

As of the November 2016 remittance, there is one loan in special servicing, representing 0.5% of the current pool balance, and 11 loans on the servicer’s watchlist, representing 5.4% of the current pool balance. Based on the most recent financials, the loans on the watchlist reported a WA DSCR and debt yield of 1.41x and 10.4%, respectively.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted and specially serviced loans, as well as for the largest 15 loans in the pool, in the DBRS CMBS IReports platform. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please log into DBRS CMBS IReports at www.ireports.dbrs.com.

The ratings assigned to Classes E and F materially deviate from the higher ratings implied by the quantitative model. DBRS considers a material deviation to be a rating differential of three or more notches between the assigned rating and the rating implied by the quantitative model that is a substantial component of a rating methodology; in this case, the assigned ratings reflect the sustainability of loan performance trends not demonstrated.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

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

The applicable methodologies are North American CMBS Rating Methodology (March 2016) and CMBS North American Surveillance (October 2016), which can be found on our website under Methodologies.