Goldman Sachs and Citigroup Global Markets Inc. have withdrawn their $1.5B GS Mortgage Securities Trust 2011-GC4 transaction issuance after Standard's & Poors stated it would not be able to delivery its ratings in time for today's scheduled closing and settlement.
‘Standard & Poor's stated that its inability to deliver final ratings at this time is based solely on an internal Standard & Poor's review of its application of conduit/fusion commercial mortgage-backed securities (CMBS) criteria with regard to debt-service-coverage ratio calculations,’ the companies said in a joint statement. ‘Standard & Poor's issued press releases explaining the nature of its internal review, stating that the review may result in multiple technical changes to its conduit/fusion CMBS ratings criteria, and indicating that until its review is completed, it will not assign new ratings to transactions based on those criteria, including the GC4 transaction.’
The companies added that the rating agency ‘had previously informed Goldman and Citi that they were prepared to rate the GC4 transaction.’ However, the companies did not state if the GC4 transaction would proceed at a later date.
