Fitch Ratings has affirmed the ratings on 13 classes of GS Mortgage Securities Corp II, series 2007-EOP. A detailed list of rating actions follows at the end of this release.
The rating affirmations reflect the continued stable operating performance of the portfolio since Fitch's prior rating action. The Rating Outlooks reflect the likely direction of any changes to the ratings over the next one to two years.
The certificates are collateralized by a single $4.8 billion non-recourse floating-rate loan secured by over 90 office properties, down from approximately 135 at issuance. Security for the loan is comprised of mortgages, equity pledges in joint ventures and cash flow pledges. In addition, there is approximately $1.6 billion of mezzanine debt held outside the trust.
Initially, the loan was modified in December 2010, extending the original maturity date to February 2012. The loan has since been extended to 2013, with an additional one-year workout extension option added, putting the fully extended maturity date of the loan to February 2014. In exchange for the extensions, the sponsor has agreed to certain conditions including the payment of additional interest spread and scheduled amortization payments of $200 million over the fully extended term. Previously, the loan was structured as interest only.
The largest property in the pool (13.5%) is 1095 Avenue of the Americas located across from Bryant Park in mid-town Manhattan. The property underwent significant interior and exterior renovations at issuance that have now been completed. As of March 2012, the property is approximately 95.6% occupied with minimal rollover before year-end 2014.
The remainder of the portfolio includes office properties located in top tier markets in Boston, New York and Northern and Southern California. The top 10 properties account for approximately 40.1% of the allocated loan balance with no single property, other than the Verizon Building, representing more than 4.5% of the collateral. Leasing activity has improved slightly over the past year and occupancy across the portfolio as of March 2021 was approximately 85.3% as compared to 85% in March 2011
Fitch affirms the following classes as indicated:
--$727.3 million class A-1 at 'AAAsf'; Outlook Stable;
--$584.8 million class A-2 at 'AAAsf'; Outlook Stable;
--$606.5 million class A-3 at 'AAAsf'; Outlook Stable;
--$370.3 million class B at 'AAAsf'; Outlook Stable;
--$432.3 million class C at 'AAsf'; Outlook Stable;
--$220 million class D at 'AA-sf'; Outlook Stable;
--$237.9 million class E at 'A+sf'; Outlook Stable;
--$214.7 million class F at 'Asf'; Outlook Stable;
--$142.4 million class G at 'A-sf'; Outlook Stable;
--$142.4 million class H at 'BBB+sf'; Outlook Stable;
--$395 million class J at 'BBB-sf'; Outlook to Stable from Negative;
--$213.6 million class K at 'BBsf'; Outlook Negative;
--$534 million class L at 'B-sf'; Outlook Negative.
Fitch previously withdrew the rating on the interest-only class X.
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:
--'Global Structured Finance Rating Criteria' (June 6, 2012);
--'Criteria for Analyzing Large Loan in U.S. Commercial Mortgage Transactions' (Sept. 26, 2011).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=651703
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