Fitch Affirms GSMS 2011-GC5

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed 11 classes of Goldman Sachs Commercial Mortgage Capital, L.P., series 2011-GC5 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 pool since issuance. The transaction continues to have a high retail concentration of 54%, with eight (39.7%) of the top 15 loans being secured by retail properties.

As of the July 2015 distribution date, the pool's aggregate principal balance has been reduced by 5% to $1.66 billion from $1.75 billion at issuance. Fitch has designated six loans (4.1%) as Fitch Loans of Concern, which includes one specially serviced asset (0.9%). Per the servicer reporting, nine loans (8.9% of the pool) are defeased. Interest shortfalls are currently affecting class G.

The transaction's largest contributor to expected losses is a specially-serviced asset (0.90%), which is real estate owned (REO). The asset is a 236,134 square foot (sf) office complex comprising six single-story buildings located in North Richland Hills, TX. The loan transferred to special servicing in April 2013 due to imminent default following the largest tenant vacating the property in early February 2013 without providing notice. In addition, the property's second largest tenant reduced their leased space by 10.3% upon their renewal date. The asset became REO in July 2013 through a non-judicial foreclosure. As per the property's March 2015 rent roll, the occupancy was reported at 51.63%.

The largest loan of the pool (11.3%) is secured by 478,028 sf within a 1.1 million-sf regional mall in Tucson, AZ. The property is anchored by Sears, Dillard's, Macy's and Century Theaters, which is the only anchor that is part of the collateral. The servicer-reported debt service coverage ratio (DSCR) was 1.63x at year-end (YE) 2014 compared to 1.64x at YE 2013. Occupancy dropped slightly to 94% as of YE 2014 compared to 95% at YE 2013.

The second largest loan of the pool (10.9%) is secured by a three-story, 25,600-sf single-tenant retail property located in Times Square in Manhattan. The property was constructed in 2008 and has been 100% occupied by American Eagle Outfitters since completion. It also includes a 250-foot (14,504 sf) rentable LED signage tower. The servicer-reported DSCR was 1.83x at YE 2014 compared to 1.75x at YE 2013.

RATING SENSITIVITIES

Rating Outlooks on classes A-1 through F remain Stable due to relatively stable performance of the pool since last review and continued paydown. No rating changes are expected unless there is material performance deterioration. Additional information on key rating drivers and rating sensitivities are further described in the new issue report GS Mortgage Securities Trust 2011-GC5 (Sept. 20, 2011), available at www.fitchratings.com.

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:

--$2.6 million class A-1 at 'AAAsf'; Outlook Stable;

--$476.6 million class A-2 at 'AAAsf'; Outlook Stable;

--$86.4 million class A-3 at 'AAAsf'; Outlook Stable;

--$568.2 million class A-4 at 'AAAsf'; Outlook Stable;

--$181.1 million class A-S at 'AAAsf'; Outlook Stable;

--$96 million class B at 'AA-sf'; Outlook Stable;

--$69.8 million class C at 'A-sf'; Outlook Stable;

--$74.2 million class D at 'BBB-sf'; Outlook Stable;

--$28.4 million class E at 'BBsf'; Outlook Stable;

--$24 million class F at 'Bsf'; Outlook Stable;

--$1.31 billion* class X-A at 'AAAsf', Outlook Stable.

*Notional amount and interest only.

Fitch does not rate the class G and X-B 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

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=989395

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=989395

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/20150812006319/en/

Fitch Ratings
Primary Analyst
Darren Liss, +1-212-908-0753
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, New York, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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