TEXT-Fitch downgrades 8 classes of GSMSC 2007-GG10

Aug 16 - Fitch Ratings has downgraded 8 classes of GS Mortgage Securities
Trust series 2007-GG10, commercial mortgage pass through certificates. The
downgrades reflect both an increase in expected losses on the specially serviced
loans as well as continued underperformance of many of the larger loans not in
special servicing.

Many of the loans have been in special servicing for a number of years as
anticipated resolutions have not occurred. These unresolved specially serviced
loans have resulted in additional trust expenses and a significant increase in
interest shortfalls from approximately $50 million in August 2011 to
approximately $83 million as of the August 2012 distribution date. Resolved
specially services loans consist primarily of loans modified with A/B structures
where Fitch deems the B-Notes unlikely to be recovered.

Additionally, while many of the performing larger loans have institutional
quality borrowers, these loans continue to show declines in net operating income
(NOI) or fail to show performance improvement from stressed levels. The
downgrades to classes A-4, A1-A and A-M reflect an expectation of significant
credit enhancement erosion, as realized losses are not expect to impact these
classes. A detailed listing of rating actions follows at the end of this
release.

Fitch modeled losses of 20.8% of the remaining pool. Fitch has designated 86
loans (60.4% of the pool balance) as Fitch Loans of Concern, which includes 41
specially serviced loans (23.4%). Fitch expects classes D through S may be fully
depleted from losses associated with the specially serviced assets. As of the
August 2012 distribution date, the pool's aggregate principal balance has been
reduced by approximately 8.8% to $6.9 billion from $7.56 billion at issuance.
Interest shortfalls are affecting classes A-J through S.

The largest contributor to losses, the Two California Plaza loan (6.8%), is
secured by a 1,329,810 square foot (sf) office property located in downtown Los
Angeles, CA. Maguire Properties is the loan sponsor. At issuance, the loan was
underwritten to a stabilized cash flow based on the expectation that below
market leases expiring during the term of the loan would be re-signed at higher
rates, providing for potential upside in future cash flows. One of the largest
tenants at the property filed bankruptcy and vacated its space in mid-2009. The
largest tenant downsized its space in 2010 leaving the property approximately
80% occupied. As of March 2012, the property was 78% occupied. The loan
transferred to the special servicer in December 2010. A receiver is in place and
the special servicer is pursuing foreclosure.

The second largest contributor to losses is the Shorenstein Portland Portfolio
(10.1%). The largest loan in the pool is secured by a portfolio of 46 office
buildings encompassing 3,882,036 sf located throughout greater Portland, OR. As
of March 2012, the portfolio was 78.9% occupied, which is slightly lower than
with occupancy levels for the past several years. This figure marks a 15%
occupancy decrease from underwriting. The decline in occupancy has affected
operating income with YE 2011 NOI 16% lower than YE 2010. The borrower is
projecting additional occupancy and revenue declines for 2012 due to a soft
leasing market and lower prevailing rental rates.

The third largest contributor to loss is the 119 West 40th Street loan (2.3%),
which is secured by a 22-story, 333,901 sf office building located in Midtown
Manhattan, New York. At issuance, the loan was underwritten to a stabilized cash
flow based on the expectation that below market leases expiring during the loan
term and the yet to be completed building upgrades would provide upside in
future cash flows.

The loan transferred to the special servicer in June 2009 for imminent default
after the debt service reserves posted at issuance were depleted and the
property had failed to achieve positive cash flow. Cost overruns associated with
building renovations resulted in uncompleted construction at the property,
including the main lobby, and caused tenants to withhold rents. A receiver is in
place and all of the construction is now complete. Occupancy was 73% as of April
2012. The receiver is working with a local broker to market and re-brand the
property. The special servicer and the borrower are in negotiations about a
possible modification.

Fitch has downgraded, removed from Rating Watch Negative and assigned Rating
Outlooks to the following classes:

--$3,661 million class A-4 to 'Asf' from 'AAAsf'; Outlook Stable;
--$485 million class A-1A to 'Asf' from 'AAAsf'; Outlook Stable;
--$756.3 million class A-M to 'Bsf' from 'BBsf'; Outlook Negative.

Fitch has downgraded the following classes:

--$94.5 million class C to 'CCsf ' from 'CCCsf'; RE 0%;
--$56.7 million class E to 'Csf ' from 'CCsf'; RE 0%;
--$75.6 million class F to 'Csf ' from 'CCsf'; RE 0%;
--$75.6 million class G to 'Csf ' from 'CCsf'; RE 0%;
--$104 million class H to 'Csf ' from 'CCsf'; RE 0%.

Fitch has affirmed the following classes:

--$340.8 million class A-2 at 'AAAsf'; Outlook Stable;
--$246.6 million class A-3 at 'AAAsf'; Outlook Stable;
--$70.8 million class A-AB at 'AAAsf'; Outlook Stable;
--$519.9 million class A-J at 'CCCsf'; RE 0%;
--$75.6 million class B at 'CCCsf'; RE 0%;
--$56.7 million class D at 'CCsf'; RE 0%;
--$94.5 million class J at 'Csf'; RE 0%;
--$75.6 million class K at 'Csf'; RE 0%;
--$37.8 million class L at 'Csf'; RE 0%;
--$18.9 million class M at 'Csf'; RE 0%;
--$28.4 million class N at 'Csf'; RE 0%;
--$18.9 million class O at 'Csf'; RE 0%;
--$18.9 million class P at 'Csf'; RE 0%;
--$18.9 million class Q at 'Csf'; RE 0%.

Class A-1 has paid in full. Fitch does not rate the $3.5 million class S. Fitch
withdrew the ratings of the interest only class X. (For additional information,
see 'Fitch Revises Practice for Rating IO & Pre-Payment Related Structured
Finance Securities', dated June 23, 2010.)

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions
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

Contact:

Primary Analyst
R. Brook Sutherland
Director
+1-312-606-2346
Fitch, Inc.
70 W. Madison Street
Chicago, IL 60602

Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785

Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278, Email:
sandro.scenga@fitchratings.com.

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);
--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec. 21,
2011).

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions

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