KBRA Assigns Ratings to GS Mortgage-Backed Securities Trust
On October 21, 2025, Kroll Bond Rating Agency (KBRA) announced the assignment of preliminary ratings to six classes of mortgage-backed securities from the GS Mortgage-Backed Securities Trust 2025-DSC2 (GSMBS 2025-DSC2). This transaction, valued at $312.2 million, is exclusively backed by a diverse pool of rental property mortgages, reflecting the adherence to strict debt-service coverage ratio (DSCR) guidelines set forth for this financial product.
Details of the Mortgage Pool
The underlying mortgaged properties consist of 1,428 rental property mortgages as of the cutoff date of October 1, 2025. Notably, the mortgage loans have an average seasoning period of approximately six months, with United Wholesale Mortgage, LLC being the principal contributor, accounting for 40.4% of the total loans. The majority of the loans are characterized as fully amortizing, fixed-rate mortgages (FRMs), with an overwhelming 99.1% of them having terms of 30 years. It is important to note that all loans in this pool have been classified as exempt from the Ability to Repay/Qualified Mortgage (ATR/QM) rule, as they were originated specifically for business purposes.
Analytical Approach and Methodology
In determining the preliminary ratings, KBRA utilized a robust analytical framework. This included a detailed loan-level assessment of the mortgage pool via its Residential Asset Loss Model (REALM), a thorough review of third-party loan file due diligence, and a cash flow modeling analysis focused on the transaction’s payment structure. Additionally, KBRA conducted evaluations of key transaction participants and assessed the legal structure and documentation surrounding the deal. More comprehensive details regarding this analysis can be found in KBRA’s U.S. RMBS Rating Methodology.
Further Information and Resources
For investors and market participants, additional insights regarding credit considerations, sensitivity analyses, and factors that could influence the ratings—potentially leading to upgrades or downgrades—are available in the full rating report. The report includes detailed descriptions of the methodologies and material sources utilized in the rating process. Interested parties can access more information on KBRA’s website, where they provide transparency about their policies, methodologies, and disclosures.
In summary, the preliminary ratings assigned to the GS Mortgage-Backed Securities Trust 2025-DSC2 signify an important step for the transaction, reflecting a structured approach to analyzing the underlying assets. As investors seek to navigate the complexities of mortgage-backed securities, the insights provided by KBRA will be invaluable in making informed financial decisions.
For further inquiries, analytical contacts at KBRA include Chris Deasy, Senior Director, and Sharif Mahdavian, Managing Director. Their contact details are available for those seeking deeper insights into this significant financial transaction.
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