OREANDA-NEWS. August 04, 2015.  Fitch Ratings has assigned the following ratings and Rating Outlooks to GS Mortgage Securities Trust Series 2015-GC32 commercial mortgage pass-through Certificates:

--\\$54,451,000 class A-1 'AAAsf'; Outlook Stable;
--\\$50,885,000 class A-2 'AAAsf'; Outlook Stable;
--\\$180,000,000 class A-3 'AAAsf'; Outlook Stable;
--\\$331,866,000 class A-4 'AAAsf'; Outlook Stable;
--\\$84,984,000 class A-AB 'AAAsf'; Outlook Stable;
--\\$772,404,000b class X-A 'AAAsf'; Outlook Stable;
--\\$60,188,000b class X-B 'AA-sf'; Outlook Stable;
--\\$70,218,000c class A-S 'AAAsf'; Outlook Stable;
--\\$60,188,000c class B 'AA-sf'; Outlook Stable;
--\\$173,038,000c class PEZ 'A-sf'; Outlook Stable;
--\\$42,632,000c class C 'A-sf'; Outlook Stable;
--\\$51,410,000 class D 'BBB-sf'; Outlook Stable;
--\\$51,410,000b class X-D 'BBB-sf'; Outlook Stable;
--\\$20,063,000a class E 'BBsf'; Outlook Stable;
--\\$10,031,000a class F 'Bsf'; Outlook Stable;

(a) Privately placed and pursuant to Rule 144A.
(b) Notional amount and interest-only.
(c) Class A-S, B and C certificates may be exchanged for class PEZ certificates, and class PEZ certificates may be exchanged for class A-S, B, and C certificates.

Since Fitch issued its expected ratings on July 13, 2015, the class X-D certificates were added by the issuer, and reference the 'BBB-sf' class D certificates. Fitch does not rate the \\$17,555,000 class G and the \\$28,840,074 class H certificates.

The classes above reflect the final ratings and deal structure. The certificates represent the beneficial ownership interest in the trust, primary assets of which are 63 loans secured by 222 commercial properties having an aggregate principal balance of approximately \\$1.003 billion as of the cut-off date. The loans were contributed to the trust by Goldman Sachs Mortgage Company, Citigroup Global Markets Realty Corp., Cantor Commercial Real Estate Lending L.P., Starwood Mortgage Funding I LLC, MC-Five Mile Commercial Mortgage Finance LLC.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 72.9% of the properties by balance, cash flow analysis of 81.8%, and asset summary reviews on 81.8% of the pool.

KEY RATING DRIVERS

Fitch Leverage: The transaction has higher leverage than other recent Fitch-rated fixed-rate multiborrower transactions. The pool's Fitch DSCR of 1.14x is lower than both the YTD 2015 average of 1.18x and the 2014 average of 1.19x, and the pool's Fitch LTV of 113.1% is higher than both the YTD 2015 average of 110.4% and the 2014 average of 106.2%.

Leverage in Line with 2014 and 2015 Averages: The Fitch DSCR and LTV are 1.19x and 106.7%, respectively. The leverage metrics for this transaction are in line with other recent Fitch-rated, fixed-rate multiborrower transactions. The 2014 and 2015 YTD averages have a DSCR and LTV of 1.19x and 106.2% and 1.20x and 110.1%, respectively.

Investment-Grade Credit Opinion Loans: The ninth largest loan, US StorageMart Portfolio, and the 11th largest loan, Alderwood Mall, both have 'AAA' credit opinions within the context of the pool. Together, the two loans represent 4.9% of the pool.

Above-Average Pool Concentration: The top 10 loans comprise 51.6% of the pool, which is slightly worse than recent averages of 50.5% and 46.5% for 2014 and YTD 2015, respectively. Additionally, both the loan concentration index (LCI) and sponsor concentration index (SCI) are 386, both of which are greater than recent respective averages of 328 and 378 for YTD 2015.

High Property Type and Hotel Concentrations: Retail properties comprise 39.6% of the pool, which is a larger concentration than average. Hotels are the next largest property type at 15.9% of the pool. Hotels have the highest probability of default in Fitch's multiborrower CMBS model.

Better Than Average Amortization: The pool is scheduled to amortize by 14.7% of the initial pool balance prior to maturity. This is better than the averages of 12.0% and 11.8% for 2014 and YTD 2015, respectively. Seven loans (9.0%) are full-term interest only and 19 loans (40.5%) are partial interest only, with the remaining 37 loans (50.5%) being balloon loans.

Mortgage Coupons: The pool's weighted average coupon is 4.43%, well below historical averages. Fitch accounted for increased refinance risk in a higher interest rate environment by reviewing an interest rate sensitivity that assumes an interest rate floor of 5% for the term risk for most property types, 4.5% for multifamily properties and 6% for hotel properties, in conjunction with Fitch's stressed refinance rates, which were 10.36% on a weighted-average basis.

RATING SENSITIVITIES

For this transaction, Fitch's net cash flow (NCF) was 12.9% below the most recent net operating income (NOI; for properties for which a recent NOI was provided, excluding properties that were stabilizing during this period). Unanticipated further declines in property-level NCF could result in higher defaults and loss severities on defaulted loans, and could result in potential rating actions on the certificates.

Fitch evaluated the sensitivity of the ratings assigned to GSMS 2015-GC32 certificates and found that the transaction displays average sensitivity to further declines in NCF. In a scenario in which NCF declined a further 20% from Fitch's NCF, a downgrade of the senior 'AAAsf' certificates to 'Asf' could result. In a more severe scenario, in which NCF declined a further 30% from Fitch's NCF, a downgrade of the senior 'AAAsf' certificates to 'BBB+sf' could result. The presale report includes a detailed explanation of additional stresses and sensitivities on pages 10 - 11.

DUE DILIGENCE USAGE

Fitch was provided with third-party due diligence information from Ernst & Young LLP. The third-party due diligence information was provided on Form ABS Due Diligence-15E and focused on a comparison and re-computation of certain characteristics with respect to each of the 63 mortgage loans. Fitch considered this information in its analysis and the findings did not have an impact on our analysis. A copy of the ABS Due Diligence Form-15E received by Fitch in connection with this transaction may be obtained through the link contained on the bottom of the related rating action commentary (RAC).