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KBRA Affirms All Ratings for GSMS 2016-GS3

10 Jul 2025   |   New York

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KBRA affirms all of its outstanding ratings for GSMS 2016-GS3, an $885.2 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a worsening in pool performance due to an increase in estimated losses since last review. However, the magnitude of these changes does not warrant ratings adjustments as of the current review.

As of the June 2025 remittance period, there are no delinquent or specially serviced loans; however, KBRA identified eight K-LOCs (34.1%). Of the eight K-LOCs, four (18.4%) have estimated losses.

K-LOCs Loss Given Default (000s) Loss Severity 02A1 540 West Madison OF 87,000 9.8% N C N Occupancy 06/15/2024 - - 05A1 Hamilton Place RT 53,416 6.0% N C N Tenant Issues 06/01/2020 $6,237 11.7% 8 Hilton Irvine LO 46,036 5.2% N C N DSCR 06/06/2025 $14,070 30.6% 12 Cool Springs Commons OF 37,000 4.2% N C N Occupancy 08/20/2020 $5,090 13.8% 14 Shoppes at Rio Grande RT 27,448 3.1% N C N Tenant Issues 06/01/2020 - - 15A1 Embassy Suites Portland Airport LO 26,675 3.0% N C N DSCR 04/08/2020 $1,111 4.2% 20 Lincoln Corners RT 16,017 1.8% N C N Occupancy 05/29/2020 - - 26 Pecos Legacy Center RT 7,931 0.9% N C N Occupancy 10/21/2024 - - Total K-LOCs $301,522 34.1% $26,507 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 85.4%, compared to 91.0% at last review and 92.5% at securitization. The KDSC is 2.18x, compared to 2.14x from last review and 2.27x at securitization.

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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: 1010291

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