Press Release|CMBS
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KBRA Downgrades Four Ratings and Affirms All Other Ratings for GSMS 2017-485L

30 Jan 2026   |   New York

Contacts

KBRA downgrades the ratings of four classes and affirms all other ratings for GSMS 2017-485L, a CMBS SASB transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a decline in performance since KBRA’s last review and securitization, primarily as a result of lease rollover, which has caused a decrease in occupancy from 99.4% at closing to 76.9% at KBRA’s current review. The resulting KNCF and KBRA value have declined 29.5% and 31.8%, respectively, from securitization. Given the current performance, the borrower is likely to face refinancing difficulties at the loan’s February 2027 maturity.

The transaction collateral is a non-recourse, first lien mortgage loan secured by the borrower’s fee simple interest in 485 Lexington Avenue, a 32-story, 935,452 sf, Class-A, office building located in the Midtown neighborhood of New York City’s borough of Manhattan. The principal balance for this transaction is $350.0 million as of the January 2026 remittance period. The fixed rate, interest-only loan has a loan term of 10 years with a maturity date in February 2027. The loan sponsor is an affiliate of SL Green Realty Corp. (NYSE: SLG), a REIT.

KBRA analyzed the cash flow for the property utilizing information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of $22.2 million and a KBRA value of $296.4 million ($317 per sf). The resulting in-trust KLTV is 118.1%, compared to 100.3% at last review and 80.5% at securitization. KBRA maintains a KPO of Underperform for the loan due to the decline in financial performance since securitization and the difficulty the borrower will likely face in refinancing the loan at its maturity in February 2027 without improvement in performance or additional equity.

Details concerning the classes with a rating change are as follows:

  • Class B to A (sf) from AA- (sf)
  • Class C to BBB- (sf) from A- (sf)
  • Class D to BB- (sf) from BBB- (sf)
  • Class HRR to B- (sf) from BB+ (sf)

Details concerning the rating affirmations are as follows:

  • Class A at AAA (sf)
  • Class X-A at AAA (sf)
  • Class X-B at AAA (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.

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