Wells Fargo Commercial Mortgage Trust 2019-C53: Rating Report

DBRS, Inc. (DBRS Morningstar) finalized its provisional ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2019-C53 issued by Wells Fargo Commercial Mortgage Trust 2019-C53.

The collateral consists of 58 fixed-rate loans secured by 85 commercial and multifamily properties. The transaction employs a sequential-pay pass-through structure. The conduit pool was analyzed to determine the provisional ratings, reflecting the long-term probability of a loan default within the term and its liquidity at maturity. When the cut-off loan balances were measured against the DBRS Morningstar Stabilized Net Cash Flow and their respective actual constants, one loan — Smoke Tree Village and Smoke Tree Commons, representing 1.5% of the pool — had a DBRS Morningstar Issuance Debt Service Coverage Ratio (DSCR) below 1.15 times (x), a threshold indicative of a higher likelihood of mid-term default. The pool additionally includes 25 loans, comprising a combined 47.2% of the pool balance, with an issuance loan-to-value (LTV) ratio in excess of 67.1%, a threshold generally indicative of above-average default frequency. The weighted-average (WA) DBRS Morningstar LTV of the pool at issuance was 64.6%, and the pool is scheduled to amortize down to a DBRS Morningstar WA LTV of 58.6% at maturity.