KBRA Affirms All Ratings for GSMS 2016-GS3
10 Jul 2024 | New York
KBRA affirms all of its outstanding ratings for GSMS 2016-GS3, an $897.3 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization due to the addition of K-LOCs as well as an increase in estimated losses since last review. However, the magnitude of these changes does not warrant ratings adjustments as of the current review. Additionally, the transaction has benefited from deleveraging from loan payoffs, amortization, and defeasance.
As of the June 2024 remittance period, there are no delinquent or specially serviced loans; however, KBRA identified seven K-LOCs (28.8% of the pool balance), including three of the top 10 loans (19.9%):
- 540 West Madison (2nd largest, 9.7% of the pool balance)
- Hamilton Place (5th largest, 6.1%, 16.4% estimated loss severity)
- Cool Springs Commons (8th largest, 4.1%, 28.8%)
One other K-LOC has an estimated loss:
- Embassy Suites Portland Airport (3.0%, 10.2%)
The remaining three K-LOCs, representing 5.8% of the pool balance, do not have estimated losses.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 91.0%, compared to 95.9% at last review and 92.5% at securitization. The KDSC is 2.14x, compared to 2.22x from last review and 2.27x at securitization.
To access rating and relevant documents, click here.
Click here to view the report.