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

DBRS Limited (DBRS) 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.

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 since issuance. The collateral consists of 59 fixed-rate loans secured by 113 multifamily properties with all loans remaining in the pool. As at the March 2018 remittance, there has been a collateral reduction of 2.7% as a result of scheduled loan amortization, with an aggregate outstanding principal balance of $935.4 million. The pool is reporting a weighted-average (WA) debt service coverage ratio (DSCR) of 1.88 times (x) and a WA debt yield of 10.5%, based on the most recent reporting available. These figures compare with the WA DBRS Term DSCR and DBRS Debt Yield figures derived at issuance of 1.52x and 8.6%, respectively. The top 15 loans reported a WA YE2017 or annualized 2017 DSCR of 1.94x, reflecting a WA net cash flow (NCF) growth of 23.0% over the DBRS issuance figures and WA NCF growth of 3.5% year-over-year.

As at the March 2018 remittance, there are 14 loans (27.8% of the pool) on the servicer’s watchlist; these loans have been flagged for a variety of issues, including performance declines, upcoming tenant rollover risk, vacancy increases or deferred maintenance concerns. For additional information on the pivotal watchlist loans, please see the DBRS Loan Commentary on the DBRS Viewpoint platform, for which information is provided below.

Classes X-A, X-B, X-C and 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.

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.

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:
-- Maine Mall (Prospectus ID#1, 11.8% of the current pool balance)
-- College Towers (Prospectus ID#14, 1.7% of the current pool balance)
-- Westwood Plaza (Prospectus ID#22, 1.2% of the current pool balance)
-- Buffalo Grove Town Center (Prospectus ID#25, 1.1% of the current pool balance)
-- Two Research Park (Prospectus ID#36, 0.7% of the current pool balance)

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.