Fitch Affirms RBSCF 2013-GSP

NEW YORK--()--Fitch Ratings has affirmed the RBS Commercial Funding Inc. 2013-GSP Trust certificates with a Stable Outlook. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The trust certificates represent the beneficial interests in a mortgage loan secured by the Garden State Plaza mall in Paramus, NJ. The trust loan is a part of a split loan structure composed of the $375 million trust loan and a pari passu, $150 million related companion loan which is not part of this transaction. The $525 million, 10-year fixed rate (3.86%) interest only (IO) whole loan matures in February 2024.

The affirmations are the result of stable collateral performance since origination. At issuance the property was 96.6% occupied. Per second quarter 2Q'14 rent roll, the property was 98.1% occupied. The servicer reported 2Q'14 debt service coverage ratio (DSCR) was 4.83x, compared to 4.45x at year-end (YE) 2013 and 4.88x at issuance.

Garden State Plaza is a 2.2 million square foot (SF) super-regional mall located in Paramus, NJ. With the exception of JC Penney (which is part of the collateral), the other four anchors - Macy's, Neiman Marcus, Nordstrom and Lord & Taylor, as well as the major tenant AMC Loews theaters, own their own spaces and are only subject to ground leases. The in-line tenancy consists of a diverse mix of over 200 retail and entertainment tenants.

The subject property is located in a populated area which provides a strong shopper base for the mall. There are four nearby regional malls - the Paramus Park Mall, The Shops at Riverside, Willowbrook Mall, and The Outlets at Bergen Town Center, all of which are located less than 10 miles away. Despite the presence of competition, the property's in-line sales remain strong. As of YE2013, sales for in-line tenants were $764 per square foot (PSF) including the Apple store, and $663 PSF excluding Apple, compared to $787 PSF and $678 PSF, respectively, as of trailing 12 month (TTM) ended September 2013. Per the 3Q'14 Reis report, the Northern NJ retail market had a vacancy rate of 5.5% with average asking rents of $28.28 PSF. The South West Bergen submarket had a vacancy rate of 5.7% with average asking rent of $32.91 PSF.

As part of its review, Fitch analyzed the performance of the loan and its underlying collateral. Fitch modeled cash flow based on YE2013 and 2Q'14 OSARs, as well as the June 2014 rent roll. Fitch stressed the cash flow by excluding revenue from several tenants with lease rollover in 2014/2015.

The Fitch stressed DSCR for the loan is 1.96x, compared to 1.99x modeled at issuance. The Fitch stressed loan-to-value ratio is 44.7%, which is based on capitalization of the Fitch-adjusted net cash flow at a rate of 7.25%, compared to 44.1% modeled at issuance.

RATING SENSITIVIES

The rating is expected to remain stable as it is anticipated the property will continue to perform within expectations.

Fitch has affirmed the following class as indicated:

--$375 million class A at 'AAAsf'; Outlook Stable.

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 report:

--RBS Commercial Funding Inc. 2013-GSP Trust -- Appendix' (Dec. 17, 2013).

Additional information on Fitch's criteria for analyzing U.S. Large Loan CMBS transactions is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (Sept. 19, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=772328

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=943215

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Amy Gan
Director
+1-212-908-9143
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Chris Bushart
Senior Director
+1-212-908-0606
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Amy Gan
Director
+1-212-908-9143
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Chris Bushart
Senior Director
+1-212-908-0606
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com