DBRS Confirms All Classes of GS Mortgage Securities Trust 2015-GC28

DBRS Limited (DBRS) confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2015-GC28 issued by GS Mortgage Securities Trust 2015-GC28 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 (low) (sf)
--Class PEZ at A (low) (sf)
--Class D at BBB (low) (sf)
--Class X-C at BB (sf)
--Class E at BB (low) (sf)
--Class X-D at B (sf)
--Class F at B (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall performance of the transaction, which has been generally stable since issuance. As of the January 2018 remittance, all of the original 74 loans secured by 112 commercial properties remain in the pool, with an aggregate principal balance of approximately $894.4 million, representing a collateral reduction of 2.0% since issuance due to scheduled loan amortization. One loan, The View at Lake Highlands (Prospectus ID#29, 1.2% of the pool), has been fully defeased.

To date, 66 loans, representing 89.2% of the pool, have reported partial-year 2017 financials, while 71 loans, representing 95.9% of the pool have reported YE2016 financials. Based on the most recent year-end financials available, the pool had a weighted-average (WA) debt service coverage ratio (DSCR) and a WA debt yield of 1.90 times (x) and 10.2%, respectively, compared to the DBRS Term DSCR and DBRS Debt Yield figures derived at issuance of 1.68x and 8.9%, respectively. Based on the same financials, the top 15 loans (51.0% of the pool) had a WA DSCR of 2.08x, compared to the WA DBRS Term DSCR figure of 1.68x, representing an 11.6% net cash flow growth over the DBRS issuance figures.

As of the January 2018 remittance, there are no loans in special servicing and seven loans, representing 8.8% of the pool, on the servicer’s watchlist. Of the seven loans on the servicer’s watchlist, two loans (4.0% of the pool) were flagged for major casualty and deferred maintenance issues, four loans (4.2% of the pool) were flagged for delinquency and/or declining cash flow performance and one loan (0.6% of the pool) was flagged for upcoming tenant rollover. Kingwood Lakes Apartments (Prospectus ID#13) was placed on the servicer’s watchlist in April 2016 for deferred maintenance issues and continues to remain on the watchlist due to damages suffered from a May 2017 fire and, later, from Hurricane Harvey in August 2017.

There is one loan that DBRS believes should be on the servicer’s watchlist in Prospectus ID#2, Discovery Corporate Center (5.6% of the pool), as the servicer previously approved a loan modification in 2016 that paved the way for the property’s current physical occupancy rate of approximately 30% as of November 2017. DBRS has asked the servicer if the loan will be placed on the watchlist in the near term and has provided detailed commentary on this loan in the DBRS Viewpoint platform, for which information is provided below.

Classes X-A, X-B, X-C, X-D are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated reference tranche 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.

As part of this review, DBRS has provided updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:
-- Prospectus ID#2 – Discovery Corporate Center
-- Prospectus ID#5 – Lincoln City Outlet Center
-- Prospectus ID#10 – Pangea 10
-- Prospectus ID#11 – Iron Horse Hotel
-- Prospectus ID#13 – Kingwood Lakes Apartments
-- Prospectus ID#17 – Fountainhead

For complimentary access to this content, please register for the DBRS Viewpoint platform at viewpoint.dbrs.com. The platform includes issuer and servicer data for the entire CMBS universe, as well as deal and loan-level commentary for all DBRS rated transactions.

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.

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