Press Release|CMBS
View PDF

KBRA Upgrades Three Ratings and Affirms All Other Ratings for GSMS 2016-GS4

9 Oct 2026   |   New York

Contacts

KBRA upgrades the ratings of three classes of certificates and affirms all other outstanding ratings for GSMS 2016-GS4, a $378.5 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction and reflect increased credit enhancement from amortization and principal paydowns, as well as improved credit metrics since KBRA's last ratings change in October 2025. Since KBRA's last review, two former K-LOCs have paid off in full at maturity without realizing their previously estimated losses. The transaction has paid down by 63.1% since securitization, resulting in increased credit enhancement for the outstanding rated classes.

As of the September 2026 remittance period, there are two specially serviced assets (26.2% of the pool balance), one which is matured performing (19.9%) and the other which is matured non-performing (6.3%). KBRA identified two K-LOCs (26.2%), both of which are the specially serviced assets. Embassy Suites Portland Airport ($23.8 million, 6.3%), which transferred to special servicing on September 11, 2026 following its August 2026 maturity default, is not yet reflected as specially serviced in the September 2026 remittance reporting. The loan is the only K-LOC with an estimated loss. The K-LOCs are depicted in the table below:

K-LOCs Loss Given Default (000s) Loss Severity 3 540 West Madison OF $75,292 19.9% Y PM N Matured- Performing 08/28/2025 - - 13 Embassy Suites Portland Airport LO $23,805 6.3% Y NPM N Specially Serviced 04/08/2020 $4,188 17.6% Total K-LOCs $99,097 26.2% $4,188 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. SS Prosp. ID Loan Name Prop Type Current In- Trust Balance (000s) % of Deal Balance Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1 KBRA Estimated 2
Source: KBRA

Excluding the K-LOC with an estimated loss, the transaction’s WA KLTV is 83.0%, compared to 91.3% at KBRA's last ratings change and 89.4% at securitization. The KDSC is 2.69x, compared to 2.24x at KBRA's last ratings change and 2.81x at securitization.

Details concerning the classes with rating changes are as follows:

  • Class B to AA+ (sf) from AA (sf)
  • Class C to A+ (sf) from A (sf)
  • Class PEZ to A+ (sf) from A (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

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 www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1017480