DBRS Morningstar Confirms All Classes of BANK 2019-BNK24

DBRS Limited (DBRS Morningstar) confirmed its ratings on the Commercial Mortgage Pass-Through Certificates, Series 2019-BNK24 issued by BANK 2019-BNK24 as follows:

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

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction since closing in late 2019. At issuance, the transaction consisted of 71 fixed-rate loans secured by 104 commercial and multifamily properties at a trust balance of $1.2 billion. According to the November 2020 remittance, all loans remain in the pool and there has been negligible amortization to date. The weighted-average (WA) loan-to-value ratio (LTV) of the pool at issuance was 52.3% and the pool is scheduled to amortize down to a WA LTV of 50.4% at loan maturity. The transaction is most concentrated in loans backed by office properties as 10 loans, representing 33.8% of the current trust balance, are secured by office collateral. The second-largest concentration by property type is multifamily properties, which back 10 loans representing 26.8% of the current trust balance.

As of the November 2020 remittance report, there were 22 loans representing 22.1% of the current pool balance on the servicer’s watchlist, with no loans in special servicing. Of the loans on the servicer’s watchlist, 14 loans representing 3.4% of the pool were secured by cooperative housing properties and all were added to the watchlist for failure to provide proof of insurance coverage. Of the remaining eight watchlisted loans, one was flagged for deferred maintenance observed at the most recent servicer’s site inspection of the collateral property, with the remaining seven loans watchlisted for low debt service coverage ratios (DSCRs) from -0.16x to 1.18x. The three largest loans on the servicer’s watchlist, all of which are in the top 15, representing a combined 13.8% of the pool, are secured by hotel properties; all three have reported DSCR declines and one of the three, Austin Marriott Portfolio (Prospectus ID #7, 5.1% of the pool), is being monitored for the borrower’s Coronavirus Disease (COVID-19) relief request, which has been approved by the servicer.

At issuance, DBRS Morningstar shadow-rated four loans, representing 22.5% of the current trust balance, investment grade, which included 55 Hudson Yards (Prospectus ID#1; 8.2% of the current trust balance), Jackson Park (Prospectus ID#2; 8.2% of the current trust balance), Park Tower at Transbay (Prospectus ID #9; 4.1% of the current trust balance), and ILPT Industrial Portfolio (Prospectus ID#15; 2.1% of the current trust balance). With this review, DBRS Morningstar confirms the performance for all four loans remains in line with the shadow ratings assigned at issuance.

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, X-D, X-F, and X-G 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 analysis and in-depth commentary in the DBRS Viewpoint platform.

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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