KBRA Downgrades Eight Ratings and Affirms All Other Ratings for GSMS 2015-GC34

KBRA downgrades the ratings of eight classes of certificates and affirms all other outstanding ratings for GSMS 2015-GC34, a $714.8 million CMBS conduit transaction, which has exhibited an increase in estimated losses compared to KBRA’s last rating adjustments in October 2022. The rating actions also consider the likelihood of interest shortfalls reaching higher in the capital structure as the servicer works through the resolutions of the transaction’s specially serviced assets and loans that may be unable to refinance at their impending maturity dates. In addition, from a positive perspective, the transaction, particularly at the top of the capital structure, has benefited from deleveraging from loan payoffs, amortization, and defeasance.

As of the September 2024 remittance period, there are three specially serviced assets (27.2% of the pool balance), including one REO asset (2.9%) and two loans (24.2%) that are over 90 days delinquent. KBRA identified eight assets (40.8%) as K-LOCs, including the specially serviced assets. The K-LOCs include five top 10 loans (37.7%):

One other K-LOC has an estimated loss:

The remaining two K-LOCs, representing 2.2% of the pool balance, do not have estimated losses.

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 85.5%, compared to 119.7% at KBRA's last ratings change in October 2022 and 104.1% at securitization. The KDSC is 1.35x, compared to 1.30x at KBRA's last ratings change and 1.45x at securitization.

Details concerning the classes with rating changes are as follows:

To access rating and relevant documents, click here.

Click here to view the report.

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