Press Release|CMBS
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KBRA Downgrades Four Ratings and Affirms One Rating for GSMS 2013-PEMB

1 Oct 2025   |   New York

Contacts

KBRA downgrades the ratings for four classes and affirms the remaining rating for GSMS 2013-PEMB, a CMBS SASB transaction. The downgrades reflect a continued decline in KNCF and KBRA value since KBRA’s last ratings adjustment in October 2024, along with the loan’s matured nonperforming status with the special servicer. In addition, the downgrades reflect that interest shortfalls are currently impacting all of the rated classes and are likely to continue as the special servicer works to resolve the loan.

The transaction collateral is a single, non-recourse, first lien mortgage loan secured by the borrower’s fee simple interest in a 535,446 sf portion of Pembroke Lakes Mall, a 1.1 million sf super-regional mall located in Pembroke Pines, Florida, approximately 18 miles southwest of Fort Lauderdale. The sponsor of the loan is Brookfield Property Partners, L.P.

The loan transferred to the special servicer on March 14, 2025, after it failed to pay off at its March 1 maturity date. It is paid through August 1, 2025 and has an outstanding balance of $260.0 million ($486 per sf) as of the September 2025 reporting. The September reporting also includes a $142.1 million ARA and an ASER of $434,568. Due to the magnitude of the ASER, Class A received 77.4% of its monthly accrued interest while the other rated classes did not receive their monthly interest distributions.

KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $15.1 million and a KBRA value of $121.2 million ($226 per sf). The resulting in-trust KLTV is 214.7%, compared to 163.5% at last review and 78.5% at securitization. Based on KBRA’s analysis, there is an implied principal loss of about $139.9 million to the trust. KBRA maintains the loan’s K-LOC designation and its KPO of Underperform.

Details concerning the classes with rating changes are as follows:

  • Class A to CCC (sf) from BBB- (sf)
  • Class B to CC (sf) from B (sf)
  • Class C to C (sf) from CCC (sf)
  • Class D to C (sf) from CC (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

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.

Doc ID: 1011597