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

DBRS Limited (DBRS) 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 B at AA (high) (sf)
--Class X-B at AA (low) (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 DBRS analysis is based on the November 2017 remittance. DBRS notes that as of the December 2017 remittance, Class A-2 has been fully repaid and will be subsequently discontinued.

The rating confirmations reflect the overall stable performance exhibited by the transaction since issuance. As of the November 2017 remittance, 59 of the original 61 loans remained in the pool with an aggregate principal balance of $771.2 million, representing a collateral reduction of 10.1% since issuance as the result of scheduled loan amortization and two loans repaying from the trust.

The pool benefits from defeasance collateral, as five loans, representing 6.2% of the current pool balance, are fully defeased. Of the remaining 54 loans, 51 are reporting YE2016 financials, and based on these figures, the pool reported a YE2016 weighted-average (WA) DBRS Term debt service coverage ratio (DSCR) and DBRS Debt Yield of 1.70 times (x) and 10.9%, respectively. Comparatively, the YE2015 WA DSCR and debt yield were 1.73x and 10.9%, respectively.

As of the November 2017 remittance, there was one loan in special servicing, representing 0.5% of the current pool balance. However, the loan is performing and reported a YE2016 DSCR of 1.80x and is expected to be transferred back to the master servicer. Additionally, there are 11 loans on the servicer’s watchlist, representing 15.9% of the current pool balance. Based on the most recent year-end financials, the loans on the watchlist reported a WA DSCR and debt yield of 1.68x and 10.3%, respectively.

Classes X-A and X-B are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO ratings mirror the lowest-rated reference tranche and may be adjusted upward by one notch if senior in the waterfall.

All ratings will be subject to ongoing surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

DBRS has provided updated loan-level commentary and analysis for larger and/or pivotal watchlisted loans and specially serviced loans 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.

For more information on this transaction and supporting data, please log into viewpoint.dbrs.com. DBRS will continue to monitor this transaction with periodic updates provided in the DBRS Viewpoint platform.

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

The principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. Please note that not every related methodology listed under a principal Structured Finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

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 under Related Documents or by contacting us at info@dbrs.com.

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

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

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.