DBRS Morningstar Upgrades Five Classes of Citigroup Commercial Mortgage Trust 2019-PRM

DBRS Limited (DBRS Morningstar) upgraded the ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2019-PRM issued by Citigroup Commercial Mortgage Trust 2019-PRM:

-- Class C at AAA (sf)
-- Class D at AAA (sf)
-- Class E at AAA (sf)
-- Class F at AAA (sf)
-- Class X at AAA (sf)

In addition, DBRS Morningstar confirmed the ratings on the following classes:

-- Class A at AAA (sf)
-- Class B at AAA (sf)

All trends are Stable.

The rating upgrades are driven by the defeasance of the Portfolio II loan (Prospectus ID#2, 78.1% of the pool), as reflected in the April 2022 remittance report. The Portfolio I loan (Prospectus ID#1, 21.9% of the pool) previously defeased with the August 2021 remittance report. With the subject loans’ defeasance, the underlying collateral has been replaced with U.S. Government securities. The $278.0 million trust loan is scheduled to mature in 2024.

At issuance, the transaction was collateralized by two five-year, interest-only (IO), first-lien mortgage loans that were secured by self-storage facilities, 11 properties in Portfolio I and 38 properties in Portfolio II. The majority of assets were located in urban and suburban areas, spread throughout 18 States across the Eastern United States. Portfolio I has a trust mortgage loan of $61.0 million and Portfolio II has a trust mortgage loan of $217.0 million. Each portfolio included additional mezzanine financing ($12.0 million for Portfolio I and $40.0 million for Portfolio II). According to the offering documents, full repayment of the mezzanine loans was a condition of defeasance.

ESG CONSIDERATIONS
There were no Environmental, Social, or Governance factors that had a significant or relevant effect on the credit analysis.

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/396929.

Classes X is an IO certificate that references 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.

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

The principal methodology is North American CMBS Surveillance Methodology (March 4, 2022), 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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