KBRA Downgrades Four Ratings and Affirms All Other Ratings for GSMS 2017-GS6
10 Apr 2025 | New York
KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings for GSMS 2017-GS6, a $904.4 million 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 four K-LOCs (24.4% of the pool balance) and the resulting loss adjusted C/E levels.
As of the March 2025 remittance period, there is one specially serviced loan (8.9%). KBRA identified seven K-LOCs (37.4%), including the specially serviced asset. Of the K-LOCs, four (24.4%) have estimated losses. These include:
Five top 10 non-defeased loans (33.3%):
- Lafayette Centre (2nd largest, 8.9% of the pool balance, 42.4% estimated loss severity)
- Pentagon Center (3rd largest, 8.9%)
- GSK R&D Centre (4th largest, 7.2%, 4.9%)
- One West 34th Street (9th largest, 4.4%, 46.8%)
- The Gramercy (10th largest, 3.9%, 9.0%)
Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 87.1%, compared to 90.9% at last review and 93.3% at securitization. The KDSC is 2.02x, compared to 2.06x at last review and 2.11x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class D to BB- (sf) from BBB- (sf)
- Class E to CCC (sf) from BB- (sf)
- Class F to CC (sf) from B- (sf)
- Class X-D to BB- (sf) from BBB- (sf)
To access ratings and relevant documents, click here.
Click here to view the report.
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Methodologies
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: North American CMBS Multi-Borrower Rating Methodology
- CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology