DBRS Confirms All Classes of GS Mortgage Securities Trust 2013-GCJ14

DBRS Limited (DBRS) confirmed all classes of Commercial Mortgage Pass-Through Certificates, Series 2013-GCJ14 (the Certificates) issued by GS Mortgage Securities Trust 2013-GCJ14 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 (sf)
-- Class C at A (high) (sf)
-- Class PEZ at A (high) (sf)
-- Class D at BBB (sf)
-- Class E at BBB (low) (sf)
-- Class F at BB (sf)
-- Class X-C at B (high) (sf)
-- Class G at B (sf)

Class PEZ is exchangeable with Classes A-S, B and C and vice versa. All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has experienced a collateral reduction of 12.5% since issuance, with 77 of the original 84 loans remaining in the pool as of the June 2018 remittance report. The majority of the remaining loans in the pool were structured with ten-year terms and will mature in 2023. Five loans, including one loan in the top 15, are fully defeased, representing 7.0% of the pool. Loans representing 90.2% of the pool reported YE2017 financials, with a weighted-average (WA) debt service coverage ratio (DSCR) and debt yield of 1.73 times (x) and 11.4%, respectively. The largest 15 loans reported either partial-year or YE2017 financials, with a WA DSCR and WA debt yield of 1.80x and 11.4%, respectively, representing a WA cash flow improvement of 10.1% over the DBRS net cash flow figures derived at issuance.

As of the June 2018 remittance, there are 17 loans, representing 22.1% of the pool (including two in the Top 15), that are on the servicer’s watchlist and no loans in special servicing. Six of the loans, representing 13.6% of the pool, are being monitored for deferred maintenance. The remaining 11 loans are being monitored for declining performance and occupancy-related issues. Cobblestone Court (Prospectus ID#14; 1.8% of the pool) is a community retail center located in Victor, New York and is the second-largest loan on the watchlist. The loan is being monitored due to the property’s largest tenant, Kmart, vacating the property ahead of its September 2019 lease expiration. Kmart, which represents 45.1% of the collateral’s net rentable area and 27.1% of base rental income, will continue to pay rent through the remainder of its lease term. Although the Kmart vacancy will likely take an extended period of time to backfill, the property’s tenant mix of national retailers and restaurants, as well as recent signings such as T.J. Maxx and Tuesday Morning, speak to the desirability of the property and the location. For additional information on this loan, please see the loan commentary on the DBRS Viewpoint platform, for which information is provided below.

Indiana Mall (Prospectus ID#20; 1.3% of the pool) is a regional mall in Indiana, Pennsylvania. The loan is currently being monitored for declining performance and low occupancy. At issuance, the property was anchored by Sears, Kmart, JCPenney and Bon-Ton. With the exception of JCPenney, the other three anchor tenants have vacated or are in the process of vacating due to financial challenges experienced in 2017. In the analysis for this loan, DBRS assumed a stressed cash flow scenario to increase the probability of default for this review. For additional information on this loan, please see the loan commentary on the DBRS Viewpoint platform, for which information is provided below.

Classes X-A and X-C are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation 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#3 – W Chicago - City Center
-- Prospectus ID#14 – Cobblestone Court
-- Prospectus ID#20 – Indiana Mall
-- Prospectus ID#27 – Aqua Waikiki Pearl

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.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.