CHICAGO--(BUSINESS WIRE)--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 stable performance of the underlying collateral pool. As of the December distribution, the pool's aggregate principal balance has been paid down by 2.13% to $1.13 billion from $1.15 billion at issuance. All of the loans reported partial year 2013 financials. Based on the annualized 2013 NOIs, the pool's overall net operating income (NOI) has been stable with a 4.9% NOI increase over the portfolio NOI at issuance.
There is currently one asset in special servicing (0.44% of the pool), which was transferred from the master servicer in February 2013. While Fitch is modeling losses on this asset, the expected losses are not anticipated to significantly impact credit enhancement.
The Rating Outlook for all classes remains Stable. Additional information on rating sensitivity is available in the report 'GS Mortgage Securities Trust 2012-GC6'(Feb. 29, 2012), available at 'www.fitchratings.com'.
The asset in special servicing is the real estate owned (REO), Lockaway Self Storage, an 82,875-sf storage facility located in Killeen, TX. The facility is located close to the military base of Fort Hood and experienced a significant drop in occupancy during the first quarter of 2013 when soldier's stationed at the base returned after an overseas deployment. The property has experienced a rebound in occupancy and the special servicer is currently evaluating disposition options.
The largest contributor to Fitch's modeled losses 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. The retail center experienced a significant drop in net operating income during the 2013 calendar year although occupancy remains relatively stable. Additionally, the sponsor is attempting to secure a significant reimbursement for repairs undertaken which were the responsibility of a tenant.
The second largest contributor to modeled losses is the Mansards Apartments (4.41%). The loan is secured by a multifamily complex consisting of 1,337 units, located in Griffith, IN. The property is located in a submarket of the Gary-Hammond, IN and it continues to struggle from the effects of the last recession. The property's NOI decreased 14% during 2012 and was attributable to a drop in the occupancy rate during the second half of the year. The borrower is working to improve occupancy, with the latest reported occupancy at 81%.
Fitch affirms the following classes:
--$40.9 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' (May 24, 2013);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).
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
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
GS Mortgage Securities Trust 2012-GC6
GS Mortgage Securities Trust 2012-GC6 -- Appendix