DBRS Morningstar Confirms All Ratings on BANK 2020-BNK30

DBRS Limited (DBRS Morningstar) confirmed its ratings on all classes of Commercial Mortgage Pass-Through Certificates (the Certificates), Series 2020-BNK30 issued by BANK 2020-BNK30 (the Issuer) as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 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 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 AA (high) (sf)
-- Class X-B at AA (low) (sf)
-- Class C at A (high) (sf)
-- Class D at A (low) (sf)
-- Class X-D at BBB (high) (sf)
-- Class E at BBB (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. Classes X-D, X-F, X-G, D, E, F, and G are privately placed.

The Class A-3-1, A-3-2, A-3-X1, A-3-X2, A-4-1, A-4-2, A-4-X1, A-4-X2, A-S-1, A-S-2, A-S-X1, and A-S-X2 certificates are also offered certificates. Such classes of certificates, together with the Class A-3, A-4, and A-S certificates, constitute the Exchangeable Certificates. The Class A-1, A-SB, A-2, B, C, D, E, F, G, and H certificates, together with the Risk Retention Interest and the Exchangeable Certificates with a certificate balance, are referred to as the principal balance certificates.

The rating confirmations reflect the transaction’s overall stable performance since issuance. At issuance, the transaction consisted of 40 fixed-rate loans secured by 62 commercial and multifamily properties, with a trust balance of $814.5 million. As of the November 2021 remittance, all loans remain in the pool and there has been negligible amortization to date. The pool has a relatively high concentration of loans secured by office and retail properties with six loans, representing 42.3% of the pool balance, secured by office properties and 10 loans, representing 33.6% of the pool, secured by retail properties.

At issuance, DBRS Morningstar shadow-rated three loans, 605 Third Avenue (Prospectus ID#1; 9.8% of the pool), McDonald’s Global HQ (Prospectus ID#4; 8.6% of the pool), and The Grace Building (Prospectus ID#6; 7.4% of the pool) as investment grade. With this review, DBRS Morningstar confirms the performance of all three loans remains in line with the investment grade shadow ratings.

According to the November 2021 remittance, five loans, representing 13.8% of the pool, are on the servicer’s watchlist, including the McDonald’s Global HQ, which was added to the watchlist in August 2021 because of a borrower noncompliance issue. However, the loan continues to report stable financials with a Q1 2021 debt service coverage ratio of 1.49 times and an occupancy rate of 96.0%. Three of the remaining loans, including 11 Bronx River Owners Inc. (Prospectus ID#35; 0.3% of the pool) and 7520 Ridge Owners Corp (Prospectus ID#40; 0.1% of the pool), which are secured by co-operative housing properties, and The Comfort Suites – Moab, UT (Prospectus ID#19; 1.0% of the pool) loan, are being monitored for deferred maintenance observed at the most recent servicer site inspections. There are no loans in special servicing.

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 A-3-X1, A-3-X2, A-4-X1, A-4-X2, X-A, X-B, A-S-X1, A-S-X2, 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.

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 the 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.

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.

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

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