KBRA Downgrades Ratings for Six Classes and Affirms All Other Ratings for GSMS 2014-GC22
1 May 2024 | New York
KBRA downgrades the rating of six classes of certificates and affirms all other outstanding ratings for GSMS 2014-GC22, a $538.0 million conduit transaction. The rating actions follow a surveillance review of the transaction, which has had an increase in estimated losses for six K-LOCs (45.9% of the pool balance) since KBRA's last ratings adjustment in May 2023. The rating actions also consider the risk that interest shortfalls may increase and rise up the capital structure as the special servicer works to resolve the transaction's specially serviced loans.
As of the April 2024 remittance report, there are five specially serviced assets (59.9%), of which two are REO (17.6%) and one is 90+ days delinquent (3.3%).
KBRA identified 11 K-LOCs (70.6%), including seven top 10 loans:
- Maine Mall (largest, 20.4% of the pool balance, 46.2% estimated loss severity)
- Selig Portfolio (2nd largest, 18.6%)
- EpiCentre (3rd largest, 15.8%, 58.9%)
- Maccabees Center (5th largest, 3.3%, 17.8%)
- College Towers (6th largest, 2.5%, 46.3%)
- Bluegrass Corporate Center (7th largest, 2.3%)
- One New Hampshire (10th largest, 2.1%, 23.5%)
One other K-LOC has an estimated loss (1.8%):
- Westwood Plaza (1.8%, 56.7%)
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 96.5% as compared to 92.1% at last review and 103.1% at issuance. The KDSC is 1.57x as compared to 1.28x at last review and 1.59x at issuance.
Details concerning the classes that have been downgraded are as follows:
- Class B AA- (sf) to A (sf)
- Class C BBB- (sf) to B- (sf)
- Class D CCC (sf) to C (sf)
- Class E CC (sf) to C ( sf)
- Class PEZ BBB- (sf) to B- (sf)
- Class X-C CC (sf) to C (sf)
To access rating and relevant documents, click here.
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