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KBRA Downgrades Three Ratings and Affirms All Other Outstanding Ratings for GSMS 2017-GS7

6 Jun 2025   |   New York

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KBRA downgrades the ratings of three classes of certificates and affirms all other outstanding ratings of GSMS 2017-GS7, an $1.0 billion CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since last review. The rating actions also reflect KBRA's estimated losses for three K-LOCs (13.4% of the pool balance) and the resulting loss adjusted C/E levels.

As of the May 2025 remittance period, there are three specially serviced loans (14.5% of the pool balance), of which one (3.6%) is in foreclosure. KBRA identified six K-LOCs (28.3%), three of which have estimated losses. The K-LOCs are displayed in the table below.

Loss Given Default (000s) Loss Severity 3 Lafayette Centre OF $80,250 7.9% Y C N Specially Serviced 10/06/2023 $34,042 42.4% 5 Long Island Prime Portfolio - Melville OF $72,300 7.1% N C N Tenant Issues 03/21/2024 $0.00 $0.00 7 5-15 West 125th Street MU $48,989 4.8% N C N Tenant Issues 05/05/2021 $0.00 $0.00 11 90 Fifth Avenue MU $37,000 3.6% Y C N Specially Serviced 03/18/2024 $19,659 53.1% 12 Marriott Grand Cayman LO $30,736 3.0% Y C Y Modification 04/11/2020 $0 0.0% 18 One West 34th Street MU $20,000 2.0% N C N DSCR 01/25/2021 $9,503 47.5% Total K-LOCs $289,275 28.3% $63,205 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 K-LOCs 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 an estimated loss, the transaction’s WA KLTV is 92.2%, compared to 98.4% at last review and 97.6% at securitization. The KDSC is 2.13x, compared to 2.06x at last review and 2.00x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class F-RR to BBB- (sf) from BBB (sf)
  • Class G-RR to B- (sf) from BB (sf)
  • Class H-RR to CCC (sf) from B+ (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: 1009783

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