DBRS Confirms All Classes of GS Mortgage Securities Trust 2014-GC22

DBRS Limited (DBRS) has today confirmed all classes of the Commercial Mortgage Pass-Through Certificates, Series 2014-GC22 issued by GS 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 AA (high) (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 X-C at BB (high) (sf)
-- Class E at BB (sf)
-- Class X-D at B (high) (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 the overall stable performance of the pool’s underlying collateral. The collateral consists of 59 fixed-rate loans secured by 113 multifamily properties. As of the March 2017 remittance, the transaction has experienced collateral reduction of 1.8% since issuance as a result of scheduled loan amortization, with an aggregate outstanding principal balance of $943.9 million. According to the most recent reporting (YE2016 or annualized quarterly 2016 financial reporting), the transaction had a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.79 times (x) and 10.3%, respectively. In comparison, the WA DBRS Term DSCR and the WA DBRS debt yield at issuance were 1.52x and 8.6%, respectively. The largest 15 loans in the pool have experienced a WA positive cash flow growth since issuance of 16.4% over the DBRS issuance figures.

There are currently nine loans on the servicer’s watchlist, representing 8.2% of the pool balance, which have been flagged for declines in performance, upcoming tenant rollover risk or deferred maintenance concerns. Notably, the College Towers loan (Prospectus ID#14) has been flagged for a below threshold DSCR, the Westwood Plaza loan (Prospectus ID#22) has been flagged for decreased occupancy and the Two Research Park loan (Prospectus ID#36) has been flagged for upcoming tenant rollover.

DBRS has provided updated loan-level commentary and analysis for the largest 15 loans in the pool, as well as the watchlisted Westwood Plaza and Two Research Park loans, 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.

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.

The principal methodologies are North American CMBS Rating Methodology (January 2017) and CMBS North American Surveillance (December 2016), which can be found on dbrs.com under Methodologies.

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