CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 14 classes of GS Mortgage Securities Trust (GSMS) 2015-GS1 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The affirmations are based on the stable performance of the underlying collateral and no material changes to the pools metrics since issuance. As of the October 2016 distribution date, the pool's aggregate principal balance has been reduced by 0.4% to $817.3 million from $820.6 million at issuance. Currently, there is one specially serviced loan (5.5%). No loans are defeased and all loans are current. There is currently a $25,292 interest shortfall affecting class G related to special servicing fees and a small reimbursement for advance interest. The Fitch debt service coverage ratio (DSCR) and loan to value (LTV) at issuance were 1.24x and 102.2%, respectively.
Stable Performance With No Material Changes: All loans in the pool are current as of the September 2016 remittance with property level performance generally in line with issuance expectations with no material changes to pool metrics.
Specially Serviced Loan: The sixth largest loan in the pool, Hammons Hotel Portfolio (5.5% of the pool), transferred to special servicing in August 2016 due to the borrower and parent company filing for Chapter 11 bankruptcy. The filing was made in connection with litigation, which was ongoing at issuance, related to a complex deal made in 2005 to reprivatize Hammons Hotels. The hotels and loan are performing better than expected with year-end 2015 NOI across the collateral properties 10.6% above bank underwriting. The weighted average RevPAR Penetration for the collateral properties was 138.3% as of the June, 2016 trailing twelve month period. This loan is a non-controlling pari passu loan with the remaining notes securitized in CGCMT 2015-GC33, GSMS 2015-GC34, and CGCMT 2015-GC35.
High Pool Concentration: The top 10 loans comprise 65.6% of the pool, which is much higher than the 2015 and 2014 vintage averages of 49.3% and 50.5%, respectively. It was also noted at issuance that the sponsor and loan concentrations were higher than average for this transaction.
High Quality Collateral: Two properties, 590 Madison and Element LA, were assigned Fitch's highest property quality grade of 'A' (20.8% of the pool) and Deerfield Crossing (3.9% of the pool) was assigned a grade of 'A-'. At issuance the majority of the properties inspected (57.9%) was assigned a property quality grade of 'B+' or 'B'. Only 9.3% of the inspected pool was assigned a property quality of 'B-', indicated below average property quality.
Investment-Grade Credit Opinion Loan: The largest loan in the pool, 590 Madison Avenue (12.2% of the pool), was assigned an investment grade credit opinion at issuance.
The Rating Outlooks on all classes remain Stable. Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's overall portfolio-level metrics.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following classes:
--$25,811,294 class A-1 'AAAsf'; Outlook Stable;
--$200,000,000 class A-2 'AAAsf'; Outlook Stable;
--$297,565,000 class A-3 'AAAsf'; Outlook Stable;
--$47,694,000 class A-AB 'AAAsf'; Outlook Stable;
--$625,710,000b class X-A 'AAAsf'; Outlook Stable;
--$43,082,000b class X-B 'AA-sf'; Outlook Stable;
--$51,288,000c class A-S 'AAAsf'; Outlook Stable;
--$43,082,000c class B 'AA-sf'; Outlook Stable;
--$141,554,000c class PEZ 'A-sf'; Outlook Stable;
--$47,184,000c class C 'A-sf'; Outlook Stable;
--$42,056,000 class D 'BBB-sf'; Outlook Stable;
--$42,056,000b class X-D 'BBB-sf'; Outlook Stable;
--$20,515,000a class E 'BB-sf'; Outlook Stable;
--$8,207,000a class F 'B-sf'; Outlook Stable.
(a) Privately placed and pursuant to Rule 144A.
(b) Notional amount and interest-only.
(c) 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 class G.
Additional information is available at 'www.fitchratings.com'.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016)
Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 16 Jun 2016)
Global Structured Finance Rating Criteria (pub. 27 Jun 2016)
U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)
Dodd-Frank Rating Information Disclosure Form
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