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

DBRS Limited (DBRS Morningstar) 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 had a collateral reduction of 18.2% since issuance with 73 of the original 84 loans remaining in the pool as of the February 2020 remittance report. The majority of the remaining loans in the pool were structured with 10-year terms and will mature in 2023. Eleven loans, including one loan in the top 15, are fully defeased, representing 11.7% of the pool.

Loans representing 86.8% of the pool reported YE2018 financials with a weighted-average (WA) debt service coverage ratio (DSCR) and debt yield of 1.69 times (x) and 11.5%, respectively. The largest 15 loans reported either partial-year or YE2018 financials with a WA DSCR and WA debt yield of 1.74x and 11.0%, respectively, representing a WA cash flow improvement of 7.1% over the DBRS Morningstar cash flow figures derived at issuance.

As of the February 2020 remittance, 14 loans, representing 22.2% of the pool (including four in the top 15), are on the servicer’s watchlist and one loan, representing 1.3% of the pool, is in special servicing.

Cobblestone Court (Prospectus ID#14; 1.9% of the pool) and Willow Knolls Court (Prospectus ID #9; 2.2% of the pool) are DBRS Morningstar Hotlist loans secured by retail properties that have lost anchor tenants in recent years. Cobblestone Court was added to the servicer’s watchlist following the loss of its anchor, Kmart (formerly 45.1% of net rentable area (NRA)), in November 2017. Kmart continued to pay rent until its lease expired in September 2019. More recently, Dick’s Sporting Goods (18.7% of NRA) announced that it will relocate to a nearby mall, but will continue to honor its existing lease which expires in January 2022.

Willow Knolls Court, an anchored shopping center in Peoria, Illinois, is being monitored after Burlington Coat Factory (25.7% of NRA) closed in January 2019. As of September 2019, the property was 74.3% occupied and reported a Q3 2019 annualized DSCR of 0.85x. The property is anchored by Kohl’s (33.0% of NRA), whose lease expires in January 2027, and a 14-screen Goodrich Quality Theater (14.5% of NRA), whose lease expires in January 2022. For additional information on these loans, please see the respective loan commentaries on the DBRS Viewpoint platform.

One loan, the Indiana Mall (Prospectus ID#20; 1.3% of the pool), is secured by a regional mall in Indiana, Pennsylvania, and is in special servicing. This loan was transferred to special servicing in November 2018 for imminent default after losing three of its four anchor tenants. The mall was 43.2% occupied at Q3 2019 and, based on the most recent appraisal, DBRS Morningstar believes that a loss severity approaching 80% could be realized at liquidation with losses expected to be contained to the unrated Class H Certificate.

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 are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.

DBRS Morningstar provides 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 (7.7% of the pool) (DBRS Morningstar Hotlist)
-- Prospectus ID#9 – Willow Knolls Court (2.2% of the pool) (DBRS Morningstar Hotlist)
-- Prospectus ID#14 – Cobblestone Court (1.9% of the pool) (DBRS Morningstar Hotlist)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com. The platform includes issuer and servicer data for most outstanding commercial mortgage-backed security transactions (including non-DBRS Morningstar rated), as well as loan-level and transaction-level commentary for most DBRS Morningstar-rated and -monitored transactions.

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

The principal methodology is North American CMBS Surveillance Methodology, which can be found on www.dbrs.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Morningstar Global Structured Finance Related Methodologies document, which can be found on www.dbrs.com in the Commentary tab under Regulatory Affairs. 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.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

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 [email protected].

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar 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. Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The DBRS Morningstar long-term rating scale definition indicates that ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at [email protected].

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