Fitch Affirms GS Mortgage Securities Trust 2013-GC13

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 15 classes of GS Mortgage Securities Trust 2013-GC13 commercial mortgage pass-through certificates, series 2013-GC13. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmations are based on stable performance of the underlying collateral pool since issuance. As of the May 2015 distribution date, the pool's aggregate principal balance has been reduced by 1.5% to $1.314 billion from $1.334 billion at issuance. There have been no delinquent or specially serviced loans since issuance.

There are five loans on the servicer watch list (3.3% of the pool); the loans are on the watch list due to deferred maintenance, lease rollover risk, and declines in occupancy and debt service coverage ratio (DSCR). The loans are current as of the May 2015 distribution date and only one of the five watch list loans has a DSCR below 1.0x.

The largest loan in the pool (11.4%) is the 11 West 42nd Street loan; a 943,701 square foot (sf), 32-story office tower located in midtown New York, NY. The property was originally built in 1927 and renovated in 1978. Major tenants include CIT Group, Inc. (16% net rentable area [NRA], expires October 2021), NYU (11.9% NRA, expires September 2021), Estee Lauder Companies Inc. (11.9% NRA, expires March 2025) and WellPoint Holding Corp (11.2%, expires December 2015). While the WellPoint lease expires in December 2015, the office submarket is strong and subject occupancy is 100% with net operating income (NOI) DSCR at 2.42x as of December 2014.

The second largest loan in the pool (11.2%) is the Mall St. Matthews loan; a 1,020,376 sf regional mall located in Louisville, KY. The mall is anchored by Dillard's (expires December 2045) and Dillard's Men's & Home (expires December 2045), which are not part of the collateral, while JC Penney (expires August 2017) and Forever 21 (expires February 2026) are included in the collateral. Total collateral is 670,376 sf. The property was originally built in 1962 but most recently renovated in 2013. Occupancy was 97% as of December 2014, which is in-line with performance at issuance. NOI DSCR was 1.94x as of December 2014.

The third largest loan in the pool (7.8%) is the Crossroads Center loan, an 895,488 sf regional mall located in St. Cloud, MN. The property is anchored by Target (not part of the collateral), JC Penney, Sears, Macy's and Scheels. The property was originally built in 1964 and most recently renovated in 2004. JC Penney (21.9% NRA) had sales of $106 psf as of December 2014 and has a lease that expires in January 2016. Occupancy was 99% as of December 2014, which is a slight improvement over performance at issuance. NOI DSCR was 2.08x as of December 2014.

RATING SENSITIVITIES

Rating Outlooks remain 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 overall portfolio-level metrics. Additional information on rating sensitivity is available in the report 'GS Mortgage Securities Trust 2013-GC13' (Jan. 17, 2014), available at www.fitchratings.com.

DUE DILIGENCE USAGE

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

Fitch has affirmed the following ratings:

--$47.2 million class A-1 at 'AAAsf', Outlook Stable;

--$72.7 million class A-2 at 'AAAsf', Outlook Stable;

--$149.7 million class A-3 at 'AAAsf', Outlook Stable;

--$135 million class A-4 at 'AAAsf', Outlook Stable;

--$420.3 million class A-5 at 'AAAsf', Outlook Stable;

--$89.2 million class A-AB at 'AAAsf', Outlook Stable;

--$98.4 million** class A-S at 'AAAsf', Outlook Stable;

--$88.4 million** class B at 'AA-sf', Outlook Stable;

--$50 million** class C at 'Asf', Outlook Stable;

--$236.8 million** class PEZ at 'Asf', Outlook Stable;

--$76.7 million class D at 'BBB-sf', Outlook Stable;

--$30 million class E at 'BBsf', Outlook Stable;

--$13.3 million class F at 'Bsf', Outlook Stable;

--$1.012 billion* class X-A 'AAAsf'; Outlook Stable;

--$30.01 million* class X-B 'BBsf'; Outlook Stable.

*Notional amount and interest only.

** Class A-S, class B, and class C certificates may be exchanged for class PEZ certificates, and class PEZ certificates may be exchanged for up to the full certificate principal amount of the class A-S, class B and class C certificates.

Fitch does not rate the interest-only class X-C or class G certificates.

A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report:

--'GS Mortgage Securities Trust 2013-GC13 -- Appendix' (Jan. 17, 2014).

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 31 Mar 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

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

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=986297

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=986297

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150612005598/en/

Fitch Ratings
Primary Analyst
Martin Nunnally
Associate Director
+1-212-908-0871
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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