DBRS Morningstar Confirms All Classes of PFP 2019-6, Ltd.

DBRS Limited (DBRS Morningstar) confirmed the ratings on the following classes of notes (the Notes) issued by PFP 2019-6, Ltd. (the Issuer):

-- Class A at AAA (sf)
-- Class A-S at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (high) (sf)
-- Class E at BBB (low) (sf)
-- Class F at BB (low) (sf)
-- Class G at B (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the collateral since issuance. The transaction benefits from its pool composition as only one loan, representing 2.3% of the current pool balance, is backed by a hospitality property, and five loans, representing 8.1% of the current pool balance, are backed by retail properties, which are vulnerable to prolonged depressed cash flows amid the current economic environment stemming from the Coronavirus Disease (COVID-19) pandemic restrictions. In addition, 15 loans, representing 44.0% of the current pool balance, are secured by properties in areas with a DBRS Morningstar Market Rank of 5, 6, 7, or 8, which are characterized as core market locations and are more urbanized or densely suburban in nature. These markets have historically benefitted from greater demand drivers and available liquidity.

In its analysis of the transaction, DBRS Morningstar applied probability of default adjustments to loans with confirmed issues related to the stressed commercial real estate environment caused by the coronavirus pandemic. Because of the transitional nature of the underlying collateral, proposed business plans that are necessary to bring the assets to stabilization may be delayed and, in some cases, borrowers have requested relief from the Issuer.

The initial collateral consisted of 36 floating-rate mortgage loans secured by 37 mostly transitional properties with a cut-off balance totalling $760.1 million, excluding approximately $80.7 million of future funding commitments. Most loans are in a period of transition with plans to stabilize and improve the asset value. During the Permitted Funded Companion Participation Acquisition Period, the Issuer may acquire future funding commitments without being subject to rating agency confirmation. As of the November 2020 remittance, the trust consists of 34 loans with a current principal balance of $760.1 million with approximately $65.9 million of future funding commitments outstanding.

As of the November 2020 remittance, five loans, representing 11.1% of the pool, are on the servicer’s watchlist with no loans in special servicing. Two of the five loans on the servicer’s watchlist were flagged for deferred maintenance. The other three loans on the servicer’s watchlist were added after coronavirus relief was requested and loan modifications were executed. In total, there are five loans, representing 18.0% of the pool, that have had loan modifications executed in 2020. The modifications include the use of reserves to pay debt service, deference and accrual of any interest shortfalls, and waiver of reserve deposits and replenishment obligations. For additional information on these loans, please see the respective loan commentaries on the DBRS Viewpoint platform.

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.

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#2 – 101 North (8.5% of the pool)
-- Prospectus ID#7 – The Alexander (4.7% of the pool)
-- Prospectus ID#9 – Barrett Pavilion (2.9% of the pool)
-- Prospectus ID#10 – Elevation at Okemos (3.8% 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 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 info@dbrsmorningstar.com.

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 info@dbrsmorningstar.com.

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