DBRS Confirms All Classes of GE Commercial Mortgage Corporation, Series 2004-C2

DBRS Limited (DBRS) confirmed all classes of Commercial Mortgage Pass-Through Certificates, Series 2004-C2 (the Certificates) issued by GE Commercial Mortgage Corporation, Series 2004-C2, as listed below.

-- Class M at A (high) (sf)
-- Class X-1 at A (sf)
-- Class N at BB (high) (sf)
-- Class O at B (sf)

All trends are Stable.

The rating confirmations reflect the current performance of the transaction, which has experienced collateral reduction of 98.0% since issuance. As of the October 2017 remittance, four of the original 119 loans are outstanding, with a cumulative current trust balance of $27.0 million. The transaction benefits from defeasance collateral as two loans, representing 3.8% of the current pool, are fully defeased. These loans are scheduled to mature in March 2019.

As of the October 2017 remittance report, the largest two loans, representing 96.2% of the pool, are in special servicing. The largest loan, Continental Center (85.8% of the current pool balance), transferred to special servicing in May 2017 due to imminent departure of two tenants, which may lead to loan default. The Bayshore Plaza loan (10.4% of the current pool balance) has been in special servicing since December 2012 and is real estate owned.

The ratings assigned to the Class M, N, and O notes materially deviate from the higher ratings implied by the quantitative results and the rating assigned to Class X-1 materially deviates from the lower ratings implied by the quantitative results. 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 results that is a substantial component of a rating methodology. The deviations for Classes M, N and O are warranted, given the large loan-level event risk. For Class X-1, the deviation is supported as consideration was given for actual loan, transaction and sector performance, where a rating based on the lowest-rated notional class may not reflect the observed risk.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans and the specially serviced loan in the transaction, as well as the Top 15 loans, in the DBRS Viewpoint platform. Registration is free. To view these and future loan-level updates provided as part of DBRS’s ongoing surveillance for this transaction, please register or log into DBRS Viewpoint at viewpoint.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.

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

The principal methodology is CMBS North American Surveillance, which can be found on www.dbrs.com under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.