Fitch Downgrades One Distressed Class of GSMSC II 2005-GG4

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has downgraded one and affirmed nine classes of GS Mortgage Securities Corporation II, commercial mortgage pass-through certificates, series 2005-GG4 (GSMSC II 2005-GG4). A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The downgrade of the already distressed class F reflects realized losses sustained by the class from the liquidation of the One HSBC Center asset, which was reflected in the October 2016 remittance. The asset, the tallest office property located in Buffalo, NY, sustained a loss of 109% on the outstanding loan balance when including fees, expenses and advances.

The affirmation of class E reflects pool concentration and adverse selection of the remaining collateral. Only three loans remain, two of which are specially serviced (64% of pool). One of the specially serviced assets (18.5%) is a retail center located in Tucson, AZ, which became real-estate owned in January 2013. The other specially serviced loan (45.5%), which is classified as in foreclosure, is secured by a hotel property located in Lansdale, PA. The only performing loan is secured by a single-tenant office property located in Wilmington, NC occupied by Verizon Wireless. The tenant extended its lease for an additional 10 years to December 2026, which is beyond the loan's March 2017 maturity.

As of the October 2016 distribution date, the pool's aggregate principal balance has been reduced by 99.2% to $32.3 million from $4 billion at issuance. Cumulative interest shortfalls totaling $31.5 million are currently affecting classes H through P.

RATING SENSITIVITIES

An upgrade of class E is unlikely due to adverse selection of the remaining collateral. Class E may be downgraded to 'Dsf' if the class incurs a loss. Classes G through O will remain at 'Dsf' due to incurred losses.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10

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

Fitch has downgraded the following class:

--$11.6 million class F to 'Dsf' from 'Csf'; RE 0%.

In addition, Fitch has affirmed the following classes:

--$20.8 million class E at 'Csf'; RE 0%;

--$0 class G at 'Dsf'; RE 0%;

--$0 class H at 'Dsf'; RE 0%;

--$0 class J at 'Dsf'; RE 0%;

--$0 class K at 'Dsf'; RE 0%;

--$0 class L at 'Dsf'; RE 0%;

--$0 class M at 'Dsf'; RE 0%;

--$0 class N at 'Dsf'; RE 0%;

--$0 class O at 'Dsf'; RE 0%.

Classes A-1, A-1P, A-DP, A-2, A-3, A-ABA, A-ABB, A-4, A-4A, A-4B, A-1A, A-J, B, C and D have paid in full. Class P is not rated by Fitch. The ratings on the interest-only classes X-P and X-C were previously withdrawn.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016)

https://www.fitchratings.com/site/re/886006

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 16 Jun 2016)

https://www.fitchratings.com/site/re/882401

Global Structured Finance Rating Criteria (pub. 27 Jun 2016)

https://www.fitchratings.com/site/re/883130

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/site/re/873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1013461

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1013461

Endorsement Policy

https://www.fitchratings.com/regulatory

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Copyright© 2016 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch's factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third- party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch's ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed.

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Fitch Ratings
Primary Analyst
Melissa Che
Director
+1-212-612-7862
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Christopher Bushart
Senior Director
+1-212-908-0606
or
Media Relations
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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