DBRS Morningstar Confirms All Ratings of Benchmark 2019-B12 Commercial Mortgage Trust, Removes One Class from UR-Neg.

DBRS Limited (DBRS Morningstar) confirmed its ratings on the Commercial Mortgage Pass-Through Certificates, Series 2019-B12 issued by Benchmark 2019-B12 Commercial Mortgage Trust as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class A-AB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AA (low) (sf)
-- Class X-B at A (high) (sf)
-- Class C at A (sf)
-- Class D at BBB (high) (sf)
-- Class X-D at BBB (high) (sf)
-- Class E at BBB (sf)
-- Class F-RR at BB (high) (sf)
-- Class G-RR at B (high) (sf)

All trends are Stable.

Class G-RR was removed from Under Review with Negative Implications where it was placed on August 6, 2020. The rating confirmations reflect the overall stable performance of the transaction since issuance. At issuance, the transaction consisted of 47 fixed-rate loans secured by 117 commercial and multifamily properties with a trust balance of $1.2 billion. According to the October 2020 remittance, all loans from issuance remain in the pool and there has been negligible amortization to date. The transaction is concentrated by property type as 13 loans, representing 31.9% of the current trust balance, are secured by office collateral while the second-largest concentration comprises14 loans, representing 24.9% of the current trust balance, secured by retail collateral. Additionally, 10 loans, representing 23.6% of the pool, are on the servicer’s watchlist. These loans are being monitored for various reasons, including low debt service coverage ratios (DSCR) or occupancy, tenant rollover risk, and/or pandemic-related forbearance requests.

As of the October 2020 remittance, two loans, representing 1.5% of the pool, were in special servicing. Greenleaf at Howell (Prospectus ID#34, 0.8% of the pool), a 227,045 square foot anchored retail center located in Howell, New Jersey, was transferred to special servicing in September 2020 for imminent monetary default related to the Coronavirus Disease (COVID-19) pandemic. Although the collateral property has performed adequately since issuance, most recently reporting a YE2019 DSCR of 1.30 times (x), the collateral’s tenant profile is at an elevated risk of depressed performance due to the pandemic. Among these tenants are Xscape Theatres, LA Fitness, and Climbzone Howell. The special servicer is currently in discussions with the borrower regarding the next steps toward a resolution. For more information on this loan, please visit www.viewpoint.dbrsmorningstar.com. Given the risks surrounding the collateral property, this loan was analyzed with elevated probability of default for this review.

At issuance, DBRS Morningstar shadow-rated 3 Columbus Circle (Prospectus ID#8, 4.2% of pool) as investment grade. DBRS Morningstar confirmed the shadow rating on 3 Columbus Circle at BBB (high), given its stable performance and low leverage.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Classes X-A, X-B, and X-D are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.

All ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.

DBRS Morningstar provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- Prospectus ID#23 – SWVP Portfolio (1.3% of the pool)
-- Prospectus ID#34 – Greenleaf at Howell (0.8% of the pool)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com The platform includes issuer and servicer data for most outstanding CMBS transactions (including non-DBRS Morningstar rated), as well as loan-level and transaction-level commentary for most DBRS Morningstar-rated and -monitored transactions.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is the North American CMBS Surveillance Methodology (March 6, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Morningstar Global Structured Finance Related Methodologies document, which can be found on dbrsmorningstar.com in the Commentary tab under Regulatory Affairs. Please note that not every related methodology listed under a principal structured finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at [email protected].
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process. Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The DBRS Morningstar long-term rating scale definition indicates that ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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