NEW YORK--(BUSINESS WIRE)--Fitch Ratings has issued a presale report on GS Mortgage Securities Trust 2013-GCJ12 Commercial Mortgage Pass-Through Certificates.
Fitch expects to rate the transaction and assign Rating Outlooks as follows:
--$84,631,000 class A-1 'AAAsf'; Outlook Stable;
--$134,221,000 class A-2 'AAAsf'; Outlook Stable;
--$200,000,000 class A-3 'AAAsf'; Outlook Stable;
--$313,849,000 class A-4 'AAAsf'; Outlook Stable;
--$105,525,000 class A-AB 'AAAsf'; Outlook Stable;
--$919,055,000* class X-A 'AAAsf'; Outlook Stable;
--$142,200,000* class X-B 'A-sf'; Outlook Stable;
--$80,829,000 class A-S 'AAAsf'; Outlook Stable;
--$86,817,000 class B 'AA-sf'; Outlook Stable;
--$55,383,000 class C 'A-sf'; Outlook Stable;
--$49,395,000a class D 'BBB-sf'; Outlook Stable;
--$32,931,000a class E 'BBsf'; Outlook Stable;
--$11,974,000a class F 'Bsf'; Outlook Stable.
*Notional amount and interest-only.
aPrivately placed pursuant to Rule 144A.
The expected ratings are based on information provided by the issuer as of May 7, 2013. Fitch does not expect to rate the $41,912,027 class G or class X-C, which is an interest only class.
The certificates represent the beneficial ownership in the trust, primary assets of which are 78 loans secured by 106 commercial properties having an aggregate principal balance of approximately $1.197 billion as of the cutoff date. The loans were contributed to the trust by Jefferies LoanCore LLC, Citigroup Global Markets Realty Corp., Goldman Sachs Mortgage Company, MC-Five Mile Commercial Mortgage Finance LLC, and Archetype Mortgage Funding I LLC.
Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 84.9% of the properties by balance and cash flow analysis and asset summary reviews on 87.3% of the pool.
KEY RATING DRIVERS
Fitch Leverage: This transaction has higher leverage than Fitch-rated first-quarter 2013 and 2012 deals. The pool's Fitch debt service coverage ratio (DSCR) and loan-to-value (LTV) are 1.20x and 102.3%, respectively, compared to the first-quarter 2013 and 2012 averages of 1.34x and 99.6% and 1.24x and 97.1%, respectively.
Loan Diversity: The top 10 loans represent 44.2% of the pool, better than the first-quarter 2013 and 2012 average concentrations of 55.4% and 54.2%, respectively. The loan concentration index (LCI) and sponsor concentration index (SCI) are 297 and 312, respectively, representing one of the more diverse conduit pools by loan size and exposure since 2008. Also, there are no pari passu loans.
Material Amortization: This transaction has no full-term interest-only loans. The pool is scheduled to pay down 17.9% from cutoff date to maturity, based on loans' scheduled maturity balances. However, partial interest-only loans account for 34.9% of the pool, which is higher than the average in first-quarter 2013 deals of 30.29%.
RATING SENSITIVITIES
For this transaction, Fitch's NCF was 7.1% below the full-year 2012 NOI (for properties that 2012 NOI was provided, excluding properties that were stabilizing during this period. Unanticipated further declines in property-level NCF could result in higher defaults and loss severity on defaulted loans, and could result in potential rating actions on the certificates. Fitch evaluated the sensitivity of the ratings assigned to GSMS 2013-GCJ12 certificates and found that the transaction displays average sensitivity to further declines in NCF. In a scenario in which NCF declined a further 20% from Fitch's NCF, a downgrade of the junior 'AAAsf' certificates to 'A-sf' could result. In a more severe scenario, in which NCF declined a further 30% from Fitch's NCF, a downgrade of the junior 'AAAsf' certificates to 'BBBsf' could result. The presale report includes a detailed explanation of additional stresses and sensitivities in the Rating Sensitivity and Rating Stresses sections of the presale.
The master servicer will be Wells Fargo Bank, N.A., rated 'CMS2' by Fitch. The special servicer will be Rialto Capital Advisors, LLC, rated 'CSS2-' by Fitch.
The presale report is available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions (August 2012);
--Global Structured Finance Rating Criteria (June 2012)
--U.S. Commercial Mortgage Servicer Rating Criteria (February 2011);
--U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (December 2012);
--Counterparty Criteria for Structured Finance Transactions (May 2012).
Applicable Criteria and Related Research GS Mortgage Securities Trust 2013-GCJ12 (US CMBS)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708486
Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685995
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923
U.S. Commercial Mortgage Servicer Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969
Counterparty Criteria for Structured Finance Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678938
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=790920
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