Press Release|CMBS
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KBRA Downgrades Two Ratings and Affirms All Other Ratings for GSMS 2016-GS4

24 Oct 2025   |   New York

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KBRA downgrades two classes and affirms all other outstanding ratings for GSMS 2016-GS4, a $685.5 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has maintained an elevated exposure to K-LOCs with estimated losses. Additionally, the transaction's capital structure has benefited from deleveraging, particularly at the top of the capital structure, through loan payoffs and amortization.

As of the October 2025 remittance period, there is one specially serviced asset (11.0% of the pool balance), which is current. KBRA identified six K-LOCs (24.8%), including the specially serviced asset.

K-LOCs Loss Given Default (000s) Loss Severity 3 540 West Madison OF $75,292 11.0% N C Y Maturity 08/28/2025 - - 9 Hamilton Place RT $34,177 5.0% N C N Tenant Issues 06/01/2020 $3,692 10.8% 13 Embassy Suites Portland Airport LO $24,362 3.6% N C N Maturity 04/08/2020 - - 14 Westchester Office Portfolio 2500-2700 OF $23,695 3.5% N C N Occupancy 03/10/2020 $11,095 46.8% 28 3507 Ringsby Court OF $6,397 0.9% N C N Maturity 10/16/2025 - - 31 Airport Village RT $5,775 0.8% N C N Occupancy 09/29/2025 - - Total K-LOCs $169,698 24.8% $14,787 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. KBRA Estimated 2 Prosp. ID Loan Name Prop Type Current In-Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 95.6%, compared to 99.5% at KBRA's last ratings change and 89.4% at securitization. The KDSC is 2.24x, compared to 2.07x at KBRA's last ratings change and 2.81x at securitization.

To access ratings and relevant documents, click here.

Click here to view the report.

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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: 1011938