KBRA Affirms All Outstanding Ratings for GSMS 2019-GC40
3 Jul 2025 | New York
KBRA affirms all outstanding ratings for GSMS 2019-GC40, a $754.8 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a slight worsening in pool performance compared to KBRA's last ratings change in June 2024. However, the magnitude of the changes does not warrant ratings adjustments at this time.
As of the June 2025 remittance period, one loan (2.6% of the current pool balance) is specially serviced and in the foreclosure process and one is 30+ days delinquent (1.6%). KBRA identified eight loans (28.0%) as K-LOCs, including the specially serviced asset. These include:
Three top 10 loans (18.3%):
- 250 Livingston (largest, 9.9% of pool balance, 35.7% estimated loss severity)
- 159 Canal Street (8th largest, 4.4%)
- Nitya Tower (10th largest, 4.0%, 25.2%)
One other K-LOC has an estimated loss:
- 57 East 11th Street (2.7%, 73.0% estimated loss severity)
The remaining four K-LOCs do not have estimated losses and represent 7.0% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 94.1%, compared to 92.6% at KBRA's last ratings change and 89.5% at securitization. The WA KDSC is 1.95x, compared to 1.96x at KBRA's last ratings change and 2.36x at issuance.
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