DBRS Morningstar Confirms All Ratings of BANK 2020-BNK29

DBRS Limited (DBRS Morningstar) confirmed its ratings on the Commercial Mortgage Pass-Through Certificates, Series 2020-BNK29 issued by BANK 2020-BNK29 as follows:

-- Class A-1 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-3-1 at AAA (sf)
-- Class A-3-2 at AAA (sf)
-- Class A-3-X1 at AAA (sf)
-- Class A-3-X2 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-4-1 at AAA (sf)
-- Class A-4-2 at AAA (sf)
-- Class A-4-X1 at AAA (sf)
-- Class A-4-X2 at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)
-- Class A-S at AAA (sf)
-- Class A-S-1 at AAA (sf)
-- Class A-S-2 at AAA (sf)
-- Class A-S-X1 at AAA (sf)
-- Class A-S-X2 at AAA (sf)
-- Class B at AAA (sf)
-- Class C at AA (high)
-- Class X-D at A (sf)
-- Class X-F at A (low) (sf)
-- Class X-G at BBB (sf)
-- Class X-H at BBB (low) (sf)
-- Class X-J at BB (sf)
-- Class X-K at B (high) (sf)
-- Class D at A (high) (sf)
-- Class E at A (low) (sf)
-- Class F at BBB (high) (sf)
-- Class G at BBB (low) (sf)
-- Class H at BB (high) (sf)
-- Class J at BB(low)(sf)
-- Class K at B (sf)

All trends are Stable.

The rating confirmations reflect the transaction’s overall stable performance since issuance, when the transaction consisted of 41 fixed-rate loans secured by 89 commercial and multifamily properties across eight states, with a trust balance of $871.2 million. According to the September 2021 remittance report, all loans remain in the pool and there has been negligible amortization to date.

The transaction is concentrated by property type with eight loans secured by office collateral, representing 52.0% of the pool and 13 loans secured by retail collateral, representing 21.1% of the pool. The remaining concentrations are relatively small, with five loans secured by mixed-use collateral, representing 8.6% of the pool, and five loans secured by self storage collateral, representing 5.2% of the pool. The remaining loans are secured by industrial, co-op housing, lodging, and mobile home park collateral.

At issuance, DBRS Morningstar shadow-rated three loans, The Grace Building (Prospectus ID#4, 8.6% of the pool), Turner Towers (Prospectus ID#13, 2.8% of the pool), and McDonald’s Global HQ (Prospectus ID#6, 5.5% of the pool) as investment grade. With this review, DBRS Morningstar confirms the performance for all three loans remains in line with the investment grade shadow ratings.

According to the September 2021 remittance report, two loans, representing 2.1% of the pool, were on the servicer’s watchlist, including the Courtyard Marriot Solana Beach (Prospectus ID#22, 1.29% of the pool) and 169-171 University Avenue (Prospectus ID#25, 0.85% of the pool). There are no loans in special servicing. The Courtyard Marriot Solana Beach was added to the watchlist in July 2021 because of a drop in the debt service coverage ratio (DSCR) from 2.11 times (x) at issuance to 0.48x as of the trailing 12-month (T-12) ended June 2021 reporting period. A reduction in occupancy to 59.1% as of the T-12 ended June 2021 reporting period, from 83.9% at year-end 2020 was the primary driver for the cash flow decline. The 169-171 University Avenue loan is being monitored for deferred maintenance observed at the most recent servicer’s site inspection.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

Classes X-A, X-B, X-D, X-F, X-G, X-H, X-J and X-K, are 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.

The DBRS Viewpoint platform provides additional information on this transaction and underlying loans including DBRS Morningstar metrics, commentary, servicer-reported cash flows, and other performance-related data.

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 26, 2021), 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.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482/baseline-macroeconomic-scenarios-application-to-credit-ratings.

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.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar’s outlooks and ratings are monitored.

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

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