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KBRA Downgrades Four Ratings and Affirms All Other Ratings for GSMS 2018-GS9

6 Mar 2025   |   New York

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KBRA downgrades the ratings of four classes of certificates and affirms all other outstanding ratings for GSMS 2018-GS9, an $827.1 million CMBS conduit transaction. The ratings actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization. The ratings actions also reflect KBRA’s estimated losses for four K-LOCs (12.5%) and the resulting loss adjusted C/E levels.

As of the February 2025 remittance period, there are three specially serviced assets (14.7%) of which one (6.4%) is in foreclosure and one (4.1%) is delinquent. KBRA identified seven K-LOCs (20.5%), including the specially serviced assets. The K-LOCs include three (14.7%) of the top 10 loans, two of which (10.5%) have estimated losses.

  • Pin Oak North Medical Office (7th largest, 6.4% of the pool balance, 27.7% estimated loss severity)
  • Worldwide Plaza (9th largest, 4.2%)
  • 90 Fifth Avenue (10th largest, 4.1%, 53.1%)

Two additional K-LOCs (2.0%) have estimated losses:

  • 357 Flatbush (1.3%, 32.4%)
  • Parkway Tower (0.7%, 18.1%)

The remaining three K-LOCs do not have estimated losses and represent 8.0% of the pool balance.

Excluding the K-LOCs with estimated losses, the transaction’s WA KLTV is 89.1% as compared to 95.8% at last review and 92.9% at securitization. The KDSC is 2.11x as compared to 2.10x at last review and 2.16x at issuance.

Details concerning the classes with rating changes are as follows:

  • Class D to BB- (sf) from BBB- (sf)
  • Class E to CCC (sf) from BB- (sf)
  • Class F-RR 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

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.

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