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KBRA Downgrades Six Ratings, Affirms Five Ratings, and Removes Eight Ratings from Watch Downgrade for GSMS 2015-GC34

11 Sep 2025   |   New York

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KBRA downgrades the ratings of six classes of certificates and affirms all other outstanding ratings for GSMS 2015-GC34, a $406.9 million CMBS conduit transaction. Simultaneously, KBRA removes the ratings of eight classes of certificates from Watch Downgrade (DN), where they were placed on June 18, 2025. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in interest shortfalls and realized losses since KBRA’s last ratings change in October 2024. Interest shortfalls are affecting classes A-S and below, primarily due to non-recoverable interest from three specially serviced assets (47.4% of the pool), including the two largest loans in the pool – Illinois Center (22.6%) and 750 Lexington Avenue (19.6%). Realized losses increased since KBRA’s last rating change due to the reimbursement of servicer advances for the three specially serviced non-recoverable assets.

As of the August 2025 remittance period, there are four specially serviced assets (53.3%), comprising one REO asset (5.1%), two assets (42.3%) in foreclosure, and the Bluejay Grocery Portfolio loan (5.9%), which transferred to the special servicer but is not yet reflected as such in the August 2025 remittance report. KBRA identified eight assets (72.8%) as K-LOCs, including the specially serviced assets. All of the K-LOCs have estimated losses and are depicted in the table below:

K-LOCs Loss Given Default (000s) Loss Severity 1 Illinois Center OF 92,126 22.6% Y NPM N Foreclosure 06/29/2022 $71,317 77.4% 2 750 Lexington Avenue OF 79,858 19.6% Y 90+ Y Foreclosure 05/27/2020 $63,339 79.3% 4 Parkside at So7 MF 49,860 12.3% N C N DSCR 06/04/2021 $4,060 8.1% 7 Bluejay Grocery Portfolio RT 24,029 5.9% N NPM N Occupancy 04/25/2017 $11,612 48.3% 10 Woodlands Corporate Center and 7049 Williams Road Portfolio MU 20,717 5.1% Y 90+ N REO 06/26/2018 $13,244 63.9% 15 Westlake Center OF 13,103 3.2% N C N Maturity 08/10/2025 $721 5.5% 25 Pfeiffer Woods OF 9,691 2.4% N C N DSCR 04/13/2016 $970 10.0% 31 222 East 59th Street OF 6,902 1.7% N 90+ N Delinquent 06/25/2019 $1,469 21.3% Total K-LOCs $296,285 72.8% $166,733 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 Prosp. ID Loan Name Prop Type Current In-Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 65.1%, compared to 85.5% at KBRA's last ratings change in October 2024 and 104.1% at securitization. The KDSC is 1.20x, compared to 1.35x at KBRA's last ratings change and 1.45x at securitization.

Details concerning the ratings changes are as follows:

  • Class A-S to BB (sf) from AA- (sf) DN
  • Class B to B- (sf) from BBB- (sf) DN
  • Class PEZ to CC (sf) from CCC (sf) DN
  • Class C to CC (sf) from CCC (sf) DN
  • Class D to C (sf) from CC (sf) DN
  • Class X-D to C (sf) from CC (sf) DN

KBRA affirms the following ratings, including two classes that were removed from Watch Downgrade:

  • Class A-4 at AAA (sf)
  • Class X-A at AAA (sf)
  • Class X-B at AAA (sf)
  • Class E to C (sf) from C (sf) DN
  • Class F to C (sf) from C (sf) DN

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publications

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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