NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned the following ratings and Rating Outlooks to GS Mortgage Securities Trust Series 2014-GC20 commercial mortgage pass-through certificates:
--$62,817,000 Class A-1 'AAAsf'; Outlook Stable;
--$41,454,000 Class A-2 'AAAsf'; Outlook Stable;
--$176,814,000 Class A-3 'AAAsf'; Outlook Stable;
--$185,000,000 Class A-4 'AAAsf'; Outlook Stable;
--$272,417,000 Class A-5 'AAAsf'; Outlook Stable;
--$88,897,000 Class A-AB 'AAAsf'; Outlook Stable;
--$899,797,000* Class X-A 'AAAsf'; Outlook Stable;
--$78,307,000* Class X-B 'AA-sf'; Outlook Stable;
--$72,398,000b Class A-S 'AAAsf'; Outlook Stable;
--$78,307,000b Class B 'AA-sf'; Outlook Stable;
--$200,940,000b Class PEZ 'A-sf'; Outlook Stable;
--$50,235,000b Class C 'A-sf'; Outlook Stable;
--$29,550,000*a Class X-C 'BB-sf'; Outlook Stable;
--$59,100,000a Class D 'BBB-sf'; Outlook Stable;
--$29,550,000a Class E 'BB-sf'; Outlook Stable.
(*) Notional amount and interest-only.
(a) Privately placed pursuant to Rule 144A.
(b) Class A-S, B and C certificates may be exchanged for class PEZ certificates, and class PEZ certificates may be exchanged for class A-S, B and C certificates.
Fitch does not rate the $65,010,362*a class X-D, the $16,252,000a class F, the $11,820,000a class G, or the $36,938,362a class H.
The classes above reflect the final ratings and deal structure. The certificates represent the beneficial ownership in the trust, primary assets of which are 63 loans secured by 127 commercial properties having an aggregate principal balance of approximately $1.18 billion as of the cutoff date. The loans were contributed to the trust by Goldman Sachs Mortgage Company; Citigroup Global Markets Realty Corp.; MC-Five Mile Commercial Mortgage Finance LLC; Starwood Mortgage Funding I LLC; and Redwood Commercial Mortgage Corporation.
Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 74% of the properties by balance, cash flow analysis of 90.8%, and asset summary reviews of 90.9% of the pool.
KEY RATING DRIVERS
High Fitch Leverage: The pool's Fitch DSCR and LTV of 1.12x and 106.5%, respectively, are worse than the 2013 and YTD 2014 averages of 1.29x and 101.6% and 1.16x and 104.9%, respectively.
Limited Lodging Exposure: The pool's hotel concentration of 7.4% is lower than the 2013 average hotel concentration of 14.7%. Two of the 15 largest loans (Sheraton Suites Houston and the Oklahoma Hotel Portfolio) in the pool are collateralized by hotel properties.
Pool Diversity: The pool is less concentrated by loan size than average transactions in 2013. The 10 largest loans represent 49.7% of the total pool balance, which is lower than the average top 10 concentration for 2013 conduit transactions (54.5%).
For this transaction, Fitch's net cash flow (NCF) was 8.5% below the most recent net operating income (NOI) (for properties for which historical NOI was provided, excluding properties that were stabilizing during the most recent reporting 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 2014-GC20 certificates and found that the transaction displays slightly above-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 'BBB+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 'BBB-sf' could result. The presale report includes a detailed explanation of additional stresses and sensitivities on pages 93 - 94.
The master servicer will be KeyBank National Association, rated 'CMS1' by Fitch. The special servicer will be LNR Partners, LLC, LLC rated 'CSS1-' 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 2013);
--Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (September 2013);
--Global Structured Finance Rating Criteria (May 2013);
--Rating Criteria for U.S. Commercial Mortgage Servicers (February 2014);
--U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (December 2013);
--Counterparty Criteria for Structured Finance and Covered Bonds (May 2013).
Applicable Criteria and Related Research:
Criteria for Analyzing Multiborrower U.S. Commercial Mortgage Transactions
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
Global Structured Finance Rating Criteria
Rating Criteria for U.S. Commercial Mortgage Servicers
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria