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KBRA Affirms All Ratings for GSMS 2015-590M

13 Aug 2025   |   New York

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KBRA affirms all outstanding ratings of GSMS 2015-590M, a CMBS SASB transaction. The affirmations follow a surveillance review of the transaction, which has exhibited improved performance since KBRA’s last review, primarily as a result of recent leasing. However, the magnitude of the change in KBRA value and KLTV does not warrant rating adjustments at this time.

The transaction collateral is a single, non-recourse, first lien mortgage loan secured by the borrower’s fee simple and leasehold interests in a 1.0 million sf, Class-A office building located at 590 Madison Avenue in New York City’s Manhattan borough. The whole loan has an outstanding principal balance of $650.0 million ($628 per sf). The trust collateral consists of a $169.4 million senior A note and a $280.6 million subordinate B note. The remaining portion of the whole mortgage loan, which is not trust collateral, consists of two senior A notes totaling $200.0 million that were contributed to two CMBS conduit transactions. The loan sponsor is the Board of the State Teachers Retirement System of Ohio (STRS Ohio). However, news reports indicate that RXR signed a letter of intent to purchase the collateral for $1.1 billion ($1,063 per sf) in May 2025. While the servicer did not confirm the sale price, it indicated that the transaction is scheduled to close in mid-August, with proceeds expected to pay off the loan prior to its October 2025 maturity date.

KBRA analyzed the cash flow for the properties utilizing information from the trustee and servicer to determine KNCF. As a result of new leasing, KBRA is no longer utilizing a stabilized analysis to derive property value and KLTV. The as-is analysis produced a KNCF of $48.9 million and a KBRA value of $631.6 million ($610 per sf). The resulting KLTV is 102.9%, a change from 109.9% (stabilized) at last review and 79.0% (stabilized) at securitization. Given the asset’s improved performance since last review, the K-LOC designation has been removed. However, due to the decline in KNCF and KBRA value since issuance, KBRA maintains the KPO of Underperform.

To access ratings and relevant documents, click here.

Click here to view the report.

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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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