Press Release|CMBS

KBRA Downgrades One Rating and Withdraws Three For GSMS 2014-GC20

28 Mar 2024   |   New York


KBRA downgrades the rating of one class, withdraws ratings of two IO classes and one other senior class, and affirms all other outstanding ratings for GSMS 2014-GC20, a $217.3 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has had an increase in KBRA's estimated losses on four K-LOC loans (64.1% of the pool balance) since KBRA's last ratings adjustment in February 2022. The rating actions also consider the deleveraging of the transaction from loan payoffs, amortization and defeasance as well as the near-term maturities of the pool's 10 remaining loans.

The IO withdrawals are in accordance with KBRA’s Methodology for Rating Interest-Only Certificates In CMBS Transactions, as there are only 10 loans remaining in the pool. The class A-5 certificate was withdrawn following the reduction of the principal balance of the rated security to zero as reflected in the March 2024 remittance report. There were no principal losses or interest shortfalls reported on the withdrawn rated securities during their lifespan.

As of the March 2024 remittance, there are three specially serviced assets (54.1%), of which two (19.4%) are REO and one (34.7%) is matured non-performing. KBRA has identified seven K-LOCs (76.8%), four (64.1%) have estimated losses. This includes:

  • Greene Town Center (largest, 34.7%, 17.1% estimated loss severity)
  • Sheraton Suites Houston (2nd largest, 15.5%, 59.9% )
  • Oklahoma Hotel Portfolio (4th largest, 10.0%, 26.4%)
  • Burlington Office Center (6th largest, 8.4%)
  • Northgate Power Center (7th largest, 3.9%, 42.8%)
  • Olive Corporate Center (8th largest, 2.7%)
  • Cordova Court Apartments (9th largest, 1.6%)

Excluding the K-LOCs with estimated losses, the WA KLTV is 105.5%, compared to 100.5% at KBRA's last ratings change and 103.1% at securitization. The KDSC is 1.18x, compared to 1.24x at KBRA's last ratings change and 1.43x at securitization.

Details concerning the classes with ratings changes and withdrawals are as follows:

  • Class D to CC (sf) from CCC (sf)
  • Class A-5 to WR from AAA (sf)
  • Class X-A to WR from AAA (sf)
  • CLass X-B to WR from AAA (sf)

To access rating and relevant documents, click here.

Click here to view the report.

Related Publication



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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003723

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