DBRS Morningstar Confirms Ratings on All Classes of GS Mortgage Securities Trust 2015-GC30

DBRS, Inc. (DBRS Morningstar) confirmed its ratings on the Commercial Mortgage Pass-Through Certificates, Series 2015-GC30 issued by GS Mortgage Securities Trust 2015-GC30 as follows:

-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-AB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A AAA (sf)
-- Class X-B at AA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class PEZ at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class X-D at BBB (low) (sf)
-- Class E at BB (sf)
-- Class F at B (sf)

Classes E and F continue to carry Negative trends as a reflection of the challenges faced by several of the larger loans in the pool, including five loans in the top 10, that are either specially serviced or on the servicer’s watchlist. The trends on all other classes are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has generally performed in line with expectations at issuance. At issuance, the transaction consisted of 90 loans secured by 178 commercial and multifamily properties, with an aggregate trust balance of $1.2 billion. As of the October 2021 remittance, 81 loans remain in the pool including 14 loans (9.9% of the pool), which are defeased. The current pool balance of $1.0 billion represents a collateral reduction of 18.1% from issuance resulting from payoffs and amortization. There have been no losses to date and all rated classes are receiving their full interest payments. There is no sizable concentration by property type in the deal.

As of the October 2021 reporting, there are three loans in special servicing, representing 4.0% of the current pool balance. The largest loan in special servicing, 170 Broadway (Prospectus ID#12, 1.9% of the pool), is secured by a 16,135-sf ground floor single-tenant retail property in the Financial District of Manhattan. The property is 100% occupied by Gap with a lease expiration in 2030. The loan transferred to special servicing in July 2020 as a result of imminent monetary default after the borrower requested Coronavirus Disease (COVID-19)-related relief in May 2020, but the servicer rejected the request because of a lack of adequate information from the borrower. The tenant and the lender were engaged in litigation over the past due rents, although the lender’s enforceability options were limited given the ongoing moratorium on enforcement actions in New York. The litigation was subsequently resolved and the tenant has paid all past due rent. While it’s anticipated that the loan will return to the master servicer in the near term, DBRS Morningstar analyzed the loan with an increased probability of default (POD) with this review.

The second-largest loan in special servicing, Hampton Inn – Albany (Prospectus ID#13, 1.7% of the pool), is secured by a 165-key limited-service hotel in downtown Albany, New York. The property is less than one mile from the New York State Capitol complex. The property operates under a franchise agreement that expires in 2030. The loan transferred to special servicing in October 2020 because of imminent monetary default. The borrower had received coronavirus-relief in September 2020 and proposed further relief that was later denied. As per the October 2021 remittance, the borrower has received final offers and is preparing for a property sale and assumption. An updated appraisal completed in November 2020 valued the property at $20.8 million, which reflects a decrease of 17.1% from the issuance appraisal value of $25.1 million. The updated value implies a loan-to-value ratio of 83.4%. DBRS Morningstar analyzed the loan with an increased POD with this review.

There are 22 loans, representing 35.6% of the current pool balance, being monitored on the servicer’s watchlist. The loans are being monitored for various reasons including low debt service coverage ratios (DSCRs), occupancy declines, and/or coronavirus-relief requests. The Worthington Renaissance Forth Worth (Prospectus ID#3, 7.7% of the pool), secured by a 504-key full-service hotel in Fort Worth, Texas, was added to the watchlist in May 2020 after the borrower requested coronavirus relief; this request was later withdrawn. The loan continues to be monitored for performance-related concerns as a result of the pandemic. Prior to the pandemic, the loan had displayed excellent performance as the year-end 2019 NCF was up 32.7% when compared with issuance levels while covering with a DSCR of 2.93 times (x). Furthermore, the most recent STR, Inc. report dated June 2021 showed the hotel has maintained a penetration rate in excess of 100% in each of the three previous years in both average daily rate (ADR) and revenue per available room (RevPAR). For the trailing 12-months ended June 2021, the hotel had recorded penetration rates of 108.5% for ADR and 100.8% for RevPAR. DBRS Morningstar analyzed the loan with an increased POD with this review.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

Classes X-A, X-B, 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 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.

The DBRS Viewpoint platform provides additional information on this transaction and underlying loans including DBRS Morningstar metrics, commentary, servicer-reported cash flows, and other performance-related data.

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 CMBS 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 the North American CMBS Surveillance Methodology (March 26, 2021), which can be found on dbrsmorningstar.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 dbrsmorningstar.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.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482/baseline-macroeconomic-scenarios-application-to-credit-ratings.

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.

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

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