Fitch Affirms All Classes of GS 2007-EOP

Business Wire,  Nov 26, 2007  

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CHICAGO -- Fitch Ratings has affirmed GS Mortgage Securities Corporation II pass-through certificates series 2007-EOP as follows:

--$989.9 million class A-1 at 'AAA';

--$584.8 million class A-2 at 'AAA';

--$606.5 million class A-3 at 'AAA';

--Interest only class X at 'AAA';

--$370.3 million class B at 'AA+';

--$432.3 million class C at 'AA'

--$220 million class D at 'AA-',

--$237.9 million class E at 'A+';

--$214.7 million class F at 'A;

--$142.4 million class G at 'A-';

--$142.4 million class H at 'BBB+';

--$395 million class J at 'BBB';

--$213.6 million class K at 'BBB-';

--$534 million class L at 'BB+'.

While the transaction has paid down 26% since issuance, no updated financial information is available and affirmations are warranted at this time. Fitch will review year end 2007 data as it becomes available. As of the October 2007 distribution date, the total collateral balance has reduced to $5.08 billion from $6.87 billion at issuance. This paydown includes two of the top ten mortgaged assets (15.9%): the Chicago portfolio (9.4%) and the Stamford, CT properties (6.5%).

The certificates are collateralized by a single $5.08 billion nonrecourse floating-rate loan secured by 110 office properties, down from $6.87 billion and 135 properties at issuance. The collateral includes mortgages, equity pledges in joint ventures and cash flow pledges. In addition, there is $2.4 billion of mezzanine debt held outside the trust.

The largest property in the pool (15.3%) is the Verizon Building located across from Bryant Park in mid-town Manhattan. The property, which is 100% vacant, is undergoing major interior and exterior renovations while it is being converted into office space. The building is 76.2% pre-leased with occupancy anticipated to begin in the second quarter of 2008.

The pool remains diverse, with 110 office properties located in 16 major metropolitan statistical areas. In addition, the pool is diverse by allocated principal balance with the top ten properties equal to 33.3% of the collateral balance (excluding the Verizon Building), with no single property comprising more than 4.8% of the collateral.

Average occupancy at the properties as of September 2007 remains strong at 91.5% (excluding the Verizon Building) compared to 91% at issuance.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

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