BANK 2019-BNK22: Presale Report

DBRS, Inc. (DBRS Morningstar) assigned provisional ratings to the Commercial Mortgage Pass-Through Certificates, Series 2019-BNK22 to be issued by BANK 2019-BNK22.

The collateral consists of 58 fixed-rate loans secured by 131 commercial and multifamily properties. The transaction is of a sequential-pay pass-through structure. The conduit pool was analyzed to determine the provisional ratings, reflecting the long-term probability of loan default within the term and its liquidity at maturity. Three loans, representing a combined 26.1% of the pool, are shadow-rated investment grade by DBRS Morningstar. When the cut-off loan balances were measured against the DBRS Morningstar Stabilized Net Cash Flow and their respective actual constants, the initial DBRS Morningstar Weighted-Average (WA) Debt Service Coverage Ratio (DSCR) of the pool was 2.90 times (x). None of the loans had a DBRS Morningstar Term DSCR below 1.30x, a threshold indicative of a higher likelihood of mid-term default. The WA loan-to-value (LTV) of the pool at issuance was 52.9%, and the pool is scheduled to amortize down to a WA LTV of 51.5% at maturity. The pool includes ten loans, representing a combined 14.3% of the pool by allocated loan balance, with issuance LTVs equal to or in excess of 65.0%, a threshold historically indicative of above-average default frequency. Forty-five loans, representing 75.2% of the pool balance, were originated in connection with the borrower’s refinancing of a previously mortgage loan. Ten loans, representing 19.3% of the pool, were originated in the connection with the borrower’s acquisition of the related mortgage property. The remaining pool was originated in connection with the recapitalization of the related property.