CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed eight 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.
KEY RATING DRIVERS
The affirmations are based on the generally stable performance of the underlying collateral pool since issuance. There are currently 43 loans collateralized by 108 properties and there are no delinquent or specially serviced loans. Fitch reviewed servicer-reported year-end (YE) 2013 financial performance for the collateral pool in addition to updated rent rolls for the top 15 loans, which represent 65.6% of the transaction. Of the pool, 30.2% matures in 2015, including three of the top 15 loans (11.3%).
As of the July 2014 distribution date, the pool's aggregate principal balance has been reduced by 3.8% to $843.5 million from $876.5 million at issuance. Per the servicer reporting, two loans (3.3% of the pool) are defeased.
The largest loan in the pool (10.4% of the pool balance) is secured by a 399,935 square foot (sf) class B office property in the Financial District 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 a 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 loan is also structured with a four-year interest-only term followed by a 30-year amortization period. The servicer-reported YE 2013 debt service coverage ratio (DSCR) was 2.50x, compared to 2.24x at YE 2012.
The second largest loan (7.4%) is secured by two office properties totaling 1.15 million sf in downtown Cleveland, OH. One Cleveland Center is a 34-story building with tenants that include Roetzel & Andress, Vorys Sater Seymour Pease, and Bank of America. The other property is Penton Media Building, which is a 20-story building with tenants that include Penton Media, PR Newswire Associates and National Union Fire Insurance. The portfolio has experienced occupancy decline since issuance. The combined occupancy for the two properties at YE 2013 was 69% compared to 76% at YE 2012 and 79% at issuance. The DSCR has also declined as a result of occupancy and increased expenses. For YE 2013, the DSCR was reported at 1.63x compared to 1.79x at YE 2012. The loan matures in 2015.
The third largest loan (7.0%) is secured by a 669,682 sf mixed-use office retail property located 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 also includes marina slips and an outdoor amphitheater. As of YE 2013, the property was 80% occupied, compared to 85% at YE 2012. The servicer-reported YE 2013 DSCR was 1.90x, compared to 1.70x at YE 2012.
The Rating Outlook on class B has been revised to Positive from Stable due to the expected paydown and increased credit enhancement from loans with 2015 maturities. Rating Outlooks on classes A-1, A-2 and C though F remain Stable as the majority of the pool has maintained performance consistent with that at issuance. Downgrades are considered unlikely, but are possible should loans not pay off at maturity or if they show significant performance declines.
Fitch affirms the following class but revises the Rating Outlook as indicated:
--$26.3 million class B at 'AAsf', Outlook to Positive from Stable.
Fitch affirms the following classes as indicated:
--$314.1 million class A-1 at 'AAAsf', Outlook Stable;
--$376.1 million class A-2 at 'AAAsf', Outlook Stable;
--Interest-Only class X-A at 'AAAsf', Outlook Stable;
--$29.6 million class C at 'Asf', Outlook Stable;
--$47.1 million class D at 'BBB-sf', Outlook Stable;
--$12.1 million class E at 'BBsf', Outlook Stable;
--$9.9 million class F at 'Bsf', Outlook Stable.
Fitch does not rate the interest-only class X-B or and class G certificates.
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 11, 2013 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which 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' (May 20, 2014);
--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).
Applicable Criteria and Related Research:
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria
Global Structured Finance Rating Criteria