KBRA Places the Ratings of Eight Classes of GSMS 2015-GC34 on Watch Downgrade

KBRA places the ratings of eight classes of GSMS 2015-GC34, a CMBS conduit transaction, on Watch Downgrade.

The Watch placements are based on an increase in interest shortfalls, and, in some cases, in the concentration of specially serviced assets and K-LOCs. Currently, interest shortfalls are affecting up to and including the Class A-S certificates. KBRA also considered the likelihood of interest shortfalls continuing and reaching higher in the capital structure during the resolution of the specially serviced assets.

As of the June 2025 remittance period, there are three specially serviced assets (33.2% of the pool balance), which include the two largest assets in the pool (29.6%) that are in foreclosure. One (3.6%) of the specially serviced assets is REO. All three specially serviced assets have been deemed non-recoverable by the servicer. Most recently, the Illinois Center loan (largest, 15.9%) was deemed non-recoverable in May 2025 and is a primary cause of interest shortfalls reaching higher in the capital structure compared to previous months. KBRA identified eight K-LOCs, 60.5% of the transaction.

KBRA will continue to monitor the transaction and the underlying loans’ performance and will seek to resolve or update the Watch Downgrade status within 90 days.

Details concerning the classes with ratings placed on Watch are as follows:

To access ratings and relevant documents, click here.

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