Fitch Upgrades GS Mortgage Securities Trust 2013-G1

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has upgraded three and affirmed four classes of Goldman Sachs & Co. GS Mortgage Securities Trust series 2013-G1. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The upgrades to classes B through D reflect the improved performance of the assets in the pool. Fitch reviewed the most recently available rent rolls and financial performance of the collateral. Full-year 2015 performance data for all three malls were provided.

As of the May 2016 distribution date, the pool's aggregate certificate balance declined by 4.7% to $543.1 million from $569 million at issuance due to scheduled amortization. The transaction consists of three mortgage loans secured by the Great Lakes Crossing Outlets (Great Lakes), located in Auburn Hills, MI; Deptford Mall (Deptford) in Deptford, NJ; and Katy Mills Mall (Katy Mills), in Katy, TX. All three malls are sponsored by large national real estate investment trusts focused on regional and super-regional shopping centers.

Great Lakes (38.8% of the pool) is a 1.4 million square foot (sf) super-regional mall/outlet center anchored by Outdoor World, AMC Theater, Burlington Coat Factory, and The Sports Authority. Collateral consists of 1.1 million sf, which excludes Outdoor World and AMC Theater. Fitch expects the Sports Authority space to vacate. The servicer reported occupancy for the collateral space improved to 99.4% as of year-end (YE) 2015 from 94.1% at issuance. Upcoming rollover for the collateral space includes 3.8% in 2016 and 6.3% in 2017. Comparable sales increased to $356 psf at YE 2015 from $348 psf at YE 2014. Fitch stressed net cash flow (NCF) debt service coverage ratio (DSCR) improved to 1.42x as of YE 2015 compared to 1.34x at issuance.

Deptford (35.4%) is a 1 million sf regional mall anchored by Macy's, JC Penney, Sears and Boscov's. Collateral for the loan consists of 343,910 sf of in-line space, which excludes the four anchor tenants. The servicer reported occupancy for the collateral space declined to 83% during the first half of 2015 following the loss and downsizing of several tenants. Occupancy has since improved to 96.6% as of YE 2015, in line with issuance (96.8%) due to newly executed leases including a new H&M store (6.5% of collateral space). Comparable sales increased to $566 psf at YE 2015 from $561 psf at YE 2014. Fitch stressed NCF DSCR improved to 1.25x as of YE 2015 compared to 1.13x at issuance. Upcoming rollover for the collateral space includes 9.5% in 2016 and 5.7% in 2017.

Katy Mills (25.8% of the pool) is a 1.6 million sf regional, mall/outlet center whose major tenants include the following: Bass Pro Shops Outdoor, AMC Theaters, Marshalls, Burlington Coat Factory, Bed Bath & Beyond, Marshalls and Off-Fifth Saks Fifth Avenue. Collateral consists of 1.2 million sf, which excludes Wal-Mart and 12 additional outparcels. The servicer reported occupancy for the collateral space improved to 96.4% as of YE 2015 compared to 88.9% at issuance. Upcoming tenant rollover for the collateral includes 2.9% in 2016 and 5.3% in 2017. Sales for tenants of less than 10,000 sf were a reported $454 psf at YE 2015 compared to $445 psf as of YE 2014. Fitch stressed NCF DSCR improved to 1.62x as of YE 2015 compared to 1.43x at issuance.

RATING SENSITIVITIES

The Rating Outlook for all classes remains Stable. Future upgrades are possible should tenants with upcoming lease expirations renew their leases and overall performance continue to improve. Conversely, downgrades would be considered should property performance or cash flow decline.

DUE DILIGENCE USAGE

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

Fitch has has upgraded the following classes:

--$76 million class B to 'AAsf' from 'AA-sf'; Outlook Stable;

--$49.7 million class C to 'Asf' from 'A-sf'; Outlook Stable;

--$38.3 million class D to 'BBBsf' from 'BBB-sf'; Outlook Stable.

Fitch has affirmed the following classes:

--$59.8 million class A-1 at 'AAAsf'; Outlook Stable;

--$295.7 million class A-2 at 'AAAsf'; Outlook Stable;

--Interest-only class X-A at 'AAAsf'; Outlook Stable;

--$23.6 million class DM* at 'BBsf'; Outlook Stable.

*Class DM represents the interest solely in the subordinate note of the Deptford Mall loan.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (pub. 27 Aug 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870009

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1005854

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1005854

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/20160609006485/en/

Fitch Ratings
Primary Analyst
Tiffany Pierce, +1-212-908-9107
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)
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Bernstein analyzes new competition in India's food delivery market
• Form 8.5 (EPT/RI) - CAB Payments Holdings Plc
• Corero Network Security positioned as a Leader in the SPARK Matrix™: Distributed Denial of Service (DDoS) Mitigation, 2026 by QKS Group