Fitch to Rate GS Mortgage Securities Corp. Trust 2013-KYO P-T Ctfs; Presale Issued

NEW YORK--()--Fitch Ratings has issued a presale report on GS Mortgage Securities Corporation Trust 2013-KYO commercial pass-through certificates, series 2013-KYO.

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

--$552,620,000 class A 'AAAsf'; Outlook Stable;

--$552,620,000* class XA-1 'AAAsf'; Outlook Stable;

--$552,620,000* class XA-2 'AAAsf'; Outlook Stable;

--$552,620,000* class XAF-1'AAAsf'; Outlook Stable;

--$552,620,000* class XAF-2 'AAAsf'; Outlook Stable;

--$547,380,000* class XB-1 'NR';

--$547,380,000* class XB-2 'NR';

--$547,380,000* class XBF-1'NR';

--$547,380,000* class XBF-2 'NR;

--$158,980,000 class B 'NR';

--$118,400,000 class C 'NR';

--$125,600,000 class D 'NR';

--$144,400,000 class E 'NR'.

* Notional amount and interest only.

The expected ratings are based on information provided by the issuer as of Jan. 18, 2013.

The certificates represent the beneficial ownership in the trust, the primary asset of which is one loan having an aggregate principal balance of approximately $1.1 billion as of the cutoff date and primarily secured by six hotels located in Honolulu and Lahania, HI and San Francisco, CA. The hotels include the Sheraton Waikiki, The Royal Hawaiian, Westin Moana Surfrider, Sheraton Princes Kaiulani, Sheraton Maui Resort & Spa, and The Palace Hotel. Collateral for the loan also includes all revenues from the properties, the Maui territory fee paid by the manager, all furniture, fixtures and equipment, the management agreement and operating licenses, leases, franchise agreements, guest information and the intellectual property. The loan was originated by Goldman Sachs Mortgage Co.

Fitch reviewed the transaction's collateral, including cash flow analysis, third party reports, loan documents, an asset summary review and site inspections. The property manager is Starwood Hotels & Resorts Management Company. The sponsors include Kokusai Kogyo Kabushiki Kaisha, a Japan corporation and Kyo-ya Company, LLC, which is co-owned by the Japan sponsor and affiliates and funds managed by Cerberus Capital Management, L.P. and Cerberus Real Estate Capital Management, LLC.

The transaction has a Fitch stressed debt service coverage ratio (DSCR) of 1.39 times (x), a Fitch stressed loan-to value (LTV) of 75.6%, and a Fitch debt yield of 13.2%. Fitch's net cash flow represents a variance of approximately 16.6% to the issuer cash flow. Based on Fitch-rated class A balance, the Fitch stressed DSCR, LTV and debt yield are 2.77x, 38% and 26.3% respectively.

The Master Servicer and Special Servicer will be Wells Fargo Bank, N.A. rated 'CMS2' and 'CSS2-', respectively, by Fitch.

The presale report is available at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (Sept. 21, 2012);

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'Criteria for Special-Purpose Vehicles in Structured Finance Transactions' (May 30, 2012);

--'U.S. Commercial Mortgage Servicer Rating Criteria' (Feb. 18, 2011);

--'Surveillance Methodology for U.S. CMBS Fixed-Rate CMBS Transaction' (December 2012)

--'Counterparty Criteria for Structured Finance Transactions' (May 30, 2012);

--'U.S. Commercial Mortgage Originator Review Criteria' (Feb. 18, 2011).

Applicable Criteria and Related Research: GS Mortgage Securities Corporation Trust, Series 2013-KYO (US CMBS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=699895

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=688831

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

Criteria for Special-Purpose Vehicles in Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=680591

U.S. Commercial Mortgage Servicer Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005

Counterparty Criteria for Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678938

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Contacts

Fitch Ratings
Primary Analyst
Jeff Watzke
Senior Director
+1-312-606-2358
Fitch, Inc.
70 W Madison St.
Chicago, IL 60602
or
Committee Chairperson
Eric Rothfeld
Managing Director
+1-212-908-0761
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Jeff Watzke
Senior Director
+1-312-606-2358
Fitch, Inc.
70 W Madison St.
Chicago, IL 60602
or
Committee Chairperson
Eric Rothfeld
Managing Director
+1-212-908-0761
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com