Goldman Sachs & Co. and Citigroup Global Markets Inc. Thursday withdrew a CMBS transaction from the market, alleging an inability to get final ratings for it from a company that had promised them.
The ratings had been a condition needed for the closing and settlement of the transaction (GS Mortgage Securities Trust 2011-GC4) that had been scheduled for Thursday, the companies said.
A spokesperson for the rating agency in question, Standard & Poor's, provided this publication with reports confirming the rating criteria review and said the company may issue additional comment "later."
S&P appears to have not been able to deliver the ratings due to a larger, pending review of its conduit/fusion CMBS criteria for debt service coverage ratio calculations. (Fusion deals combine smaller and larger loan sizes.)
The review appears to have suspended the company’s ability to rate new deals of this type where the calculations are required until the review is completed.
