Fitch Affirms GSMS 2014-GC26

NEW YORK--()--Fitch Ratings has affirmed 12 classes of GS Mortgage Securities Trust series 2014-GC26 (GSMS 2014-GC26) commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations are due to the overall stable performance of the underlying collateral pool. Fitch reviewed the most recently available financial performance data for the transaction, as well as updated rent rolls for the majority of the top 15 loans, which represent 49.3% of the transaction.

As of the October 2015 distribution date, the pool's aggregate principal balance has been reduced by 0.4% to $1.25 billion from $1.26 billion at issuance. Fitch has designated one loan (1.8%) as a Fitch Loan of Concern. No loans are specially serviced.

The largest loan in the pool is the Queen Ka'ahumanu Center (7.1% of the pool), which is secured by a 570,904-sf open-air regional mall located in Kahului, HI in Maui. There are no other regional malls or department stores on the island of Maui. The subject has had an occupancy rate greater than or equal to 92% since 2011. As of the September 2015 rent roll, property occupancy was 92.5% overall and approximately 87.1% for in line space. Comparable store sales (for tenants less than 10,000 sf) were reported at $502 psf (TTM 9/15) compared with $489 (TTM 7/14)

The mall is anchored by a Macy's Men's, Children's and Home (14.5% of the NRA), Macy's (14% of the NRA) and Sears (13.6% of NRA). There is also a six-screen theater, Ka'ahumanu Theater (4.9%), which shows first run movies in both 3D and standard formats. A small 26,000 sf Foodland grocery store sits on an out-parcel next to the mall and is included in the collateral.

The Fitch Loan of Concern is the 129-131 Greene Street loan (1.8%), which is secured by a two-story 8,200-sf retail condo located on Greene Street between Houston and Prince Streets in the SoHo neighborhood of New York City. The property is 100% leased to Google on a 10-year NNN lease that matures in 2024. The store was to be one of Google's first brick-and-mortar retail locations worldwide. However, Google never took occupancy, and the property is currently being marketed for sub-lease. Google has the option to terminate its lease with a fee after five years in 2019. Further, the loan is structured with a full cash flow sweep should Google give notice of early termination. The loan matures in 2018.

RATING SENSITIVITIES

The Rating Outlook for all classes remains Stable. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's portfolio-level metrics. Additional information on rating sensitivity is available in the report 'GS Mortgage Securities Trust 2014-GC26' (Nov. 17, 2014) available at www.fitchratings.com.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following ratings:

--$41 million class A-1 at 'AAAsf'; Outlook Stable;

--$71 million class A-2 at 'AAAsf'; Outlook Stable;

--$40 million class A-3 at 'AAAsf'; Outlook Stable;

--$280 million class A-4 at 'AAAsf'; Outlook Stable;

--$349.8 million class A-5 at 'AAAsf'; Outlook Stable;

--$91.6 million class A-AB at 'AAAsf'; Outlook Stable;

--$92.6 million class A-S at 'AAAsf'; Outlook Stable;

--$56.5 million class B at 'AA-sf'; Outlook Stable;

--$40.8 million class C at 'Asf'; Outlook Stable;

--$0 class PEZ at 'Asf'; Outlook Stable;

--Interest-only class X-A at 'AAAsf'; Outlook Stable;

--Interest-only class X-B at 'AA-sf'; Outlook Stable.

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 class D, E, F, G and H certificates, or interest-only classes X-C and X-D.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Related Research

GS Mortgage Securities Trust 2014-GC26 - Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=816808

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=994355

Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=994355

Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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:
Stacey McGovern, +1-212-908-0722
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
New York
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst:
Stacey McGovern, +1-212-908-0722
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson:
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
New York
sandro.scenga@fitchratings.com