Fitch Affirms GSMS 2014-GC20

NEW YORK--()--Fitch Ratings has affirmed 15 classes of GS Mortgage Securities Trust Series 2014-GC20 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 the result of stable performance of the underlying collateral pool since issuance. As of the October 2015 distribution date, the pool's aggregate principal balance has been reduced by 1.29% to $1.17 billion from $1.18 billion at issuance. Fitch has designated two loans (4.2%) as Fitch Loans of Concern. Fitch sited concerns due to a decrease in performance since issuance; however, Fitch does not anticipate an imminent transfer to special servicing for any of the loans at this time.

The largest loan in the pool, the Newcastle Senior Housing Portfolio (6.92% of the pool), is secured by 26 independent living senior housing facilities located across 14 states in the U.S. The portfolio is 100% private pay and offers no assisted living functions. The loan is subject to three other pari-passu notes for a total debt load of $351.5 million. As of December 2014, the DSCR and occupancy was reported to be 1.97x and 94%, respectively, compared to 1.59x and 91% at issuance.

The second largest loan in the pool, Greene Town Center (6.85%), is secured by an open-air, mixed-use lifestyle center located in Beavercreek, OH, approximately 10 miles southeast of the Dayton CBD. The collateral consists of retail (566,634 sf), office (143,343 sf) and residential space (206 units totaling 199,248 sf). Additionally, there is a 130,000-sf ground lease to Von Maur department store. The loan is subject to a $46.7 million pari-passu note within the CGCMT 2014-GC21 transaction. Occupancy was reported to be 94% as of June 2015, which is in line with the occupancy at issuance.

The third largest loan in the pool, Chase Tower (6.92%), is secured by a 21-story, 389,503-sf office building located in the Austin, TX CBD. Attached to the office tower is a seven-story parking garage with 750 parking spaces, which provides for a ratio of 1.93 spaces per 1,000 sf. As of June 2015, the property was 98% occupied.

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.

DUE DILIGENCE USAGE

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

Fitch affirms the following classes as indicated:

--$47.6 million class A-1 at 'AAAsf'; Outlook Stable;

--$41.5 million class A-2 at 'AAAsf'; Outlook Stable;

--$176.8 million class A-3 at 'AAAsf'; Outlook Stable;

--$185 million class A-4 at 'AAAsf'; Outlook Stable;

--$272.4 million class A-5 at 'AAAsf'; Outlook Stable;

--$88.9 million class A-AB at 'AAAsf'; Outlook Stable;

--$72.4 million class A-S at 'AAAsf'; Outlook Stable;

--$78.3 million class B at 'AA-sf'; Outlook Stable;

--$0 class PEZ at 'A-sf'; Outlook Stable;

--$50.2 million class C at 'A-sf'; Outlook Stable;

--$59.1 million class D at 'BBB-sf'; Outlook Stable;

--$29.6 million class E at 'BB-sf'; Outlook Stable;

--$884.6 million* class X-A at 'AAAsf'; Outlook Stable;

--$78.3 million* class X-B at 'AA-sf'; Outlook Stable;

--$29.6 million* class X-C at 'BB-sf'; Outlook Stable.

*Notional amount and Interest-Only.

Fitch does not rate the class F, G, X-D and H certificates.

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. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812608

Related Research

GS Mortgage Securities Trust 2014-GC20 -- Appendix
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748110

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=993932

Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=993932

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:
Catherine Barbieri, +1-212-908-0638
Associate 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:
Catherine Barbieri, +1-212-908-0638
Associate 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