DBRS Morningstar Discontinues Remaining Ratings on GS Mortgage Securities Trust, Series 2012-GCJ7

DBRS Limited (DBRS Morningstar) downgraded its ratings on the following class of Commercial Mortgage Pass-Through Certificates, Series 2012-GCJ7 issued by GS Mortgage Securities Trust, Series 2012-GCJ7 as follows:

-- Class E to D (sf) from C (sf)

DBRS Morningstar also discontinued its rating on Class D as it was successfully repaid with the November 2022 remittance. Class E continues to have a rating that does not carry a trend.

The rating downgrade and discontinuation were due to the losses and proceeds as a result of one of the two remaining loans in the pool, Bellis Fair Mall (Prospectus ID #3). The loan was liquidated from the pool with the November 2022 remittance and incurred a cumulative loss of $26.2 million and generated proceeds of $45.8 million. Proceeds from the liquidation repaid Class D, while Class E has incurred $17.4 million in realized losses and has a remaining balance of $2.5 million.

With the November 2022 remittance, the transaction balance has been reduced by 99.85% of its original balance with only one loan, 25 West 51st Street (Prospectus ID #76), remaining in the pool, which currently resides in special servicing. The loan is secured by a 6,000-sf below-grade retail condominium in New York City. The property remains 100% vacant, and the foreclosure was previously filed in October 2022.

In accordance with DBRS Morningstar’s policies and procedures, the rating on Class E was simultaneously discontinued and withdrawn as there is no benefit to investors in maintaining the rating.

ESG CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929 (May 17, 2022).

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is North American CMBS Surveillance Methodology (October 3, 2022), which can be found on dbrsmorningstar.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Morningstar Global Structured Finance Related Methodologies document, which can be found on dbrsmorningstar.com in the Commentary tab under Regulatory Affairs. Please note that not every related methodology listed under a principal structured finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/402907.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrsmorningstar.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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