Press Release|CMBS

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.

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: 1005041

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