NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed all classes of Goldman Sachs Commercial Mortgage Capital, L. P. commercial mortgage pass-through certificates, series 2010-C2. A detailed list of rating actions follows at the end of this press release.
Limited updated financial information was collected by the master servicer (3%), which is not uncommon for a first review after issuance. Fitch's affirmations are based on the performance of the underlying collateral pool, as no loans have been delinquent or specially serviced since issuance.
The performance of the underlying collateral pool has been stable with minimal changes since issuance. The transaction is geographically diversified across 32 states and Puerto Rico. However, the transaction has high loan concentration with the top ten loans representing 51.8% of the pool and the top 15 representing 65.2%. Fitch has identified one loan (0.9%) as a Fitch Loan of Concern due to the closing of Borders Books, the largest tenant, which occupied 26% of the property.
As of October 2011 distribution date, the pool's aggregated principal balance has been reduced by 0.7% to $869.4 million from $876.5 million at issuance.
The largest loan of the pool (10.1%) is secured by a 399,935 square feet (SF) class B office property in the Financial District submarket of Manhattan, NY. The property is 100% occupied by the United Federation of Teachers (UFT) under a long-term lease which expires in August 2034. UFT also holds 9.9% ownership interest in the building. The loan is structured with a letter of credit (LOC) which can be drawn upon to cover debt service shortfalls.
The second largest loan of the pool (7.4%) is secured by two class B office properties totaling 1.15 million SF in Cleveland, OH. As of June 2011, the combined occupancy of the two properties was 77.7% compared to 78.8% at issuance.
The third largest loan of the pool (7.1%) is secured by a 669,682 SF mixed-use office retail property in Pittsburgh, PA. The property is considered an area landmark and tourist destination. It consists of five buildings that house office space, retail shops, restaurants, commuter parking, and night clubs, in addition to river docks, marina slips, and an outdoor amphitheater. As of June 2011, the property was 85% occupied compared to 84.6% at issuance.
Fitch affirms the following classes and maintains the Stable Outlook:
--$334 million class A-1 'AAAsf';
--$376 million class A-2 'AAAsf';
--$710 million class X-A 'AAAsf';
--$26.3 million class B 'AAsf';
--$29.6 million class C 'Asf';
--$47.1 million class D 'BBB-sf';
--$12 million class E 'BBsf';
--$9.9 million class F 'Bsf'.
Fitch does not rate the IO class X-B and the $28.5 million class G.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Nov. 17, 2010);
--'Global Structured Finance Rating Criteria' (Aug. 13, 2010).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=574208
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