NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed seven classes of Goldman Sachs & Co. GS Mortgage Securities Trust series 2013-G1. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations reflect the relatively stable performance and strong occupancy of the assets in the pool. Fitch reviewed the most recently available financial performance of the collateral. Full year 2013 and year-to-date (YTD) Sept. 30, 2014 performance data for all three malls was provided.
As of the February 2015 distribution date, the pool's aggregate certificate balance declined by 2.85% to $553.8 million from $569 million from issuance due to scheduled amortization. The transaction consists of three mortgage loans secured by the Great Lakes Crossing Outlets (Great Lakes), located in Auburn Hills, MI; Deptford Mall (Deptford) in Deptford, NJ; and Katy Mills Mall (Katy Mills), in Katy, TX.
As of YTD Sept. 30, 2014, the servicer reported occupancy at Great Lakes had improved to 99.7% from 94% at issuance. Upcoming rollover for the mall includes 2% in 2015 and 10% in 2016. At issuance, in-line sales for the mall were $454 per square foot (psf); As of YTD Sept. 30, 2014 sales for tenants occupying less than 10,000 sf, were approximately $394 psf.
Occupancy at Katy Mills improved to a reported level of 96.9% as of Sept. 30, 2014 compared to 88.9% at issuance. Upcoming tenant rollover includes 8% in 2015 and 5% in 2016. In-line sales for the mall were $417 psf compared to $390 psf at issuance.
Deptford Mall reported a slight decline in occupancy to 93.6% from 96.8% at issuance due to the loss of several small tenants. In addition, 6% of leases roll in 2015 and 5% roll in 2016. In-line sales for the mall improved to $510 psf compared to $449 psf at issuance.
Fitch requested, via the 17-g5 service provider (Goldman Sachs), further clarification of specific revenue and expense line items with respect to Great Lakes and Katy Mills, including a decline in the total reported base rental income at Great Lakes, which appears inconsistent with the increasing occupancy; and significantly lower than historical reimbursement income reported for Katy Mills. Fitch expects to review the transaction again when year-end 2014 financial statements become available.
RATING SENSITIVITIES
The Rating Outlook for all classes remains Stable. No rating actions are anticipated unless there are material changes in property performance or cash flow. Fitch will continue to monitor each mall's performance to ensure that revenues and expenses considered at the time of Fitch's initial ratings remain in line over the loans' terms.
Fitch affirms the following classes as indicated:
-- $69.9 million class A-1 at 'AAAsf', Outlook Stable;
-- $295.7 million class A-2 at 'AAAsf', Outlook Stable;
-- Interest only class X-A at 'AAAsf'; Outlook Stable;
-- $76.0 million class B at 'AA-sf', Outlook Stable;
-- $49.7 million class C at 'A-sf', Outlook Stable;
-- $38.3 million class D at 'BBB-sf', Outlook Stable;
-- $24.2 million class DM* at 'BBsf', Outlook Stable;
*Class DM represents the interest solely in the subordinate note of the Deptford Mall loan.
Additional information on Fitch's criteria for analyzing large loans in U.S. CMBS transactions is available in the Sept. 19, 2014 report, 'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions', which is available at 'www.fitchratings.com' under the following headers:
Structured Finance >> CMBS >> Criteria Reports
Additional information is available at 'www.fitchratings.com'.
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:
'GS Mortgage Securities Trust 2013-G1--Appendix' (Feb. 21, 2013).
Applicable Criteria and Related Research:
-- 'Global Structured Finance Rating Criteria' (Aug. 4, 2014);
-- 'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transaction' (Sept. 19, 2014);
-- 'GS Mortgage Securities Trust 2013-G1' (Feb. 21, 2013).
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
GS Mortgage Securities Trust 2013-G1 -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=702217
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=981015
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