CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed 10 classes of Goldman Sachs Mortgage Company's GS Mortgage Securities Trust (GSMS) commercial mortgage pass-through certificates series 2012-GC6. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations are based on the overall stable performance of the underlying collateral pool. As of the December 2015 distribution, the pool's aggregate principal balance has been paid down by 5.78% to $1.09 billion from $1.15 billion at issuance. Seventy-five (97.4% of the pool) of the 77 pool loans reported full year 2014 financials or rolling 12-month 2015 financials. Based on the 2014 servicer reported net operating income (NOI), the pool's overall NOI has increased 7.2% since issuance.
The pool currently has nine loans on the servicer watchlist (9.31%). Of these nine loans, one in the top 15, SunTrust International Center (5.47%), is classified as a Fitch Loan of Concern. Six of the properties are encountering deferred maintenance or insurance issues that are anticipated to be resolved and represent minimal operating risk. In total, 7.1% of the pool is considered Fitch Loans of Concern. The real estate owned (REO) asset, Lockway Self Storage (0.21% as of the November 2015 distribution), was disposed of as of December 2015 with a small loss to the trust. The pool has had no delinquent or specially serviced loans.
The largest Fitch Loan of Concern is SunTrust International Center (5.47% and the third largest loan in the transaction). The loan is secured by a 420,857 square foot (sf) office building located in the central business district of Miami, FL. The largest tenant of the building, Akerman Senterfitt, comprising 28% of the net rentable area (NRA) vacated the building in October 2015 via a one-time termination option.
The tenant paid a $3.8 million termination fee which is expected to be used for releasing costs associated with securing a new occupant. The termination option was disclosed when the transaction was issued. Fitch applied additional stresses to the property's cash flow to reflect the decrease in rental income. Fitch will continue to monitor the leasing activity during 2016.
The second largest Fitch Loan of Concern is Bradford Office Park (0.93% of the pool). The loan is collateralized by a 102,395-sf suburban office asset located in Huntsville, AL. As of July 2015, the servicer commentary noted the subject's occupancy dipped to 74% from 100% at issuance. The sponsor has offset the loss of tenant income with a reduction of expenses. The building's cashflow continues to cover the debt service payments with a DSCR of 1.20x, as of June 2015. The sponsor indicates that the area is experiencing strong economic growth and the vacant space is being aggressively marketed.
The third largest Fitch Loan of Concern is the Towers of Coral Springs (0.72%). The loan is secured by a suburban office building, located in Coral Springs, FL. The property has underperformed since issuance primarily due to high tenant turnover. Occupancy at the complex was 67%, as of Sept. 2015, from a high at issuance of 81%. Although the market is experiencing economic weakness, the sponsor indicated that building is attracting new tenants since a new brokerage team began handling leasing duties during the second half of 2015.
The Rating Outlook for all classes remains Stable. Due to the recent issuance of the transaction and overall 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.
--$81.0 million class A-2 at 'AAAsf'; Outlook Stable;
--$570.5 million class A-3 at 'AAAsf'; Outlook Stable;
--$89.9 million class A-AB at 'AAAsf'; Outlook Stable;
--$903.2 million class X-A at 'AAAsf'; Outlook Stable;
--$119.8 million class A-S at 'AAAsf'; Outlook Stable;
--$63.5 million class B at 'AA-sf'; Outlook Stable;
--$44.7 million class C at 'A-sf'; Outlook Stable;
--$49.1 million class D at 'BBB-sf'; Outlook Stable;
--$21.6 million class E at 'BBsf'; Outlook Stable;
--$11.5 million class F at 'Bsf'; Outlook Stable.
Classes A-1 has repaid in full. Fitch does not rate the class G and class X-B certificates.
Additional information is available at www.fitchratings.com.
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)
GS Mortgage Securities Trust 2012-GC6 -- Appendix
Dodd-Frank Rating Information Disclosure Form