Fitch Ratings has affirmed two classes of GS Mortgage Securities Corporation II 1998-C1, commercial mortgage pass-through certificates. A detailed list of rating actions follows the end of the press release.
The affirmation is due to sufficient credit enhancement to the remaining investment grade class. The pool has become more concentrated, with 44 remaining loans from the original 323 at issuance. Of the remaining loans, 13 loans (20.2%) are defeased. Fitch identified 11 (42.6%) Loans of Concern, of which two (21.5%) are specially serviced.
As of the May 2012 distribution date, the pool's certificate balance has paid down 89.9% to $115.3 million from $1.8 billion. The expected losses of the original pool are at 4.72%, which includes 3.87% to date. In addition, cumulative interest shortfalls totaling $7.7 million are affecting classes H through K.
The largest contributor to losses is a real estate owned (REO) asset secured by a 296,735 square foot (SF) shopping center located in Queensbury, NY. The loan transferred to special servicing in May 2008 due to imminent default and became REO in March 2012 via a deed-in-lieu.
The second contributor to losses is a loan secured by a 211,089 SF office building located in San Juan, PR. The loan transferred to special servicing in February 2011 for imminent default. The property has been suffering from poor performance since 2008 due to declining occupancy.
Fitch affirms the following classes and assigns Recovery Estimate (RE) as indicated:
--$23.2 million class G at 'BBBsf'; Outlook Negative;
--$44.2 million class H at 'Dsf'; RE 55%;
--Class J at 'Dsf'; RE0%.
Fitch does not rate classes F and K.
Classes A-1, A-2, A-3, B, C, D, and E have paid in full.
Fitch has previously withdrawn the rating on the interest-only class X.
Additional information on Fitch's criteria is available in the Dec. 21, 2011 report, 'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions', which is available at 'www.fitchratings.com' under the following headers:
Structured Finance >> CMBS >> Criteria Reports
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings
Applicable Criteria and Related Research:
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions', Dec. 21, 2011;
--'Global Structured Finance Rating Criteria' Aug. 4, 2011.
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=662869
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Fitch Ratings
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Sean Gibbs, +1-212-908-0311
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or
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Mary MacNeill,
+1-212-908-0785
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or
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sandro.scenga@fitchratings.com