Fitch Ratings has affirmed 11 classes of Goldman Sachs Mortgage Company's GS Mortgage Securities Trust (GSMS) commercial mortgage pass-through certificates series 2012-GC6 due to stable performance since issuance. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are based on the overall stable performance of the underlying collateral pool. As of the December distribution, the pool's aggregate principal balance has been paid down by 3.76% to $1.11 billion from $1.15 billion at issuance. All of the loans reported full year 2013 financials. Based on the 2013 NOIs, the pool's overall net operating income (NOI) has been stable with a 4.5% NOI increase over the portfolio NOI at issuance.
Fitch has identified 12.3% of the pool as Fitch Loans of Concern, including two of the top 15 loans. In addition, one self-storage asset (0.4%) is with the special servicer and is real estate owned (REO). While Fitch is modeling losses on the asset, they are not expected to significantly impact credit enhancement.
The largest Fitch Loan of Concern is SunTrust International Center (5.43%). The loan is secured by a 420,857 square foot (sf) office building located in the central business district of Miami, FL. The largest tenant, Akerman Senterfitt, comprising 28% of the net rentable area (NRA) notified the sponsor of their intention to vacate the building in late 2015 via a one-time termination option. The tenant is paying a $3.8 million termination fee which is expected to be used for releasing costs associated with securing a new occupant. Fitch applied additional stresses to the property's cash flow to reflect the potential decrease in rental income.
The second largest Fitch Loan of Concern is Audubon Crossing and Audubon Commons (4.01% of the pool). The loan is collateralized by a 449,170-sf anchored retail center located in Audubon, NJ. Although occupancy has remained stable since issuance (93% as of Sept. 2014 v. 95% at issuance), the retail center experienced a significant drop in NOI during the 2013 calendar year primarily due to a 20% decrease in gross income receipts. Additionally, the sponsor has noted increases to expense items such as marketing, general administrative costs, and maintenance items. The servicer continues to monitor the property and awaits clarification from the sponsor on the reason for the revenue decrease. Fitch's requests for more detailed responses regarding the NOI decline have yet to be answered via the 17g5 provider.
The third largest Fitch Loan of Concern is the Ellis Street Apartments (0.33%). The loan is secured by a multifamily complex consisting of 80 units, located in Chicago, IL. The property has underperformed since issuance primarily due to high tenant turnover and lower rental rates. Occupancy at the complex has held steady at 90% since origination and the sponsor has hired a leasing manager in an effort bolster in-place rents and lower tenant turnover.
RATINGS SENSITIVITY
The Rating Outlook for all classes remains Stable. Due to the recent issuance of the transaction and overall stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset level event changes the transaction's portfolio-level metrics. Additional information on rating sensitivity is available in the report 'GS Mortgage Securities Trust 2012-GC6' (Feb. 29, 2012), available at 'www.fitchratings.com'.
Fitch affirms the following classes:
--$22.1 million class A-1 at 'AAAsf'; Outlook Stable;
--$82.2 million class A-2 at 'AAAsf'; Outlook Stable;
--$570.5 million class A-3 at 'AAAsf'; Outlook Stable;
--$89.9 million class A-AB at 'AAAsf'; Outlook Stable;
--$903.2 million class X-A at 'AAAsf'; Outlook Stable;
--$119.8 million class A-S at 'AAAsf'; Outlook Stable;
--$63.5 million class B at 'AA-sf'; Outlook Stable;
--$44.7 million class C at 'A-sf'; Outlook Stable;
--$49.1 million class D at 'BBB-sf'; Outlook Stable;
--$21.6 million class E at 'BBsf'; Outlook Stable;
--$11.5 million class F at 'Bsf'; Outlook Stable.
Fitch does not rate the class G and class X-B certificates.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 10, 2014).
A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following reports:
--'GS Mortgage Securities Trust 2012-GC6' (Feb. 29 2012);
--'GS Mortgage Securities Trust 2012-GC6 - Appendix' (Feb. 29 2012).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608
GS Mortgage Securities Trust 2012-GC6
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672589
GS Mortgage Securities Trust 2012-GC6 -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=673076
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=971075
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