Morningstar DBRS Publishes Updated Commercial Real Estate Methodologies

Morningstar DBRS published three updated commercial real estate methodologies as follows:

-- “North American Single-Asset/Single-Borrower Ratings Methodology”;
-- “North American CMBS Multi-Borrower Rating Methodology”; and
-- “North American CMBS Surveillance Methodology.”

The updates are a result of the annual methodology review. The methodologies were inclusive of adding more transparency surrounding the magnitude of inputs or adjustments in the “North American Single-Asset/Single-Borrower Ratings Methodology,” an updated validation of the CMBS Insight Model (version 1.2.0.0) within the “North American CMBS Multi-Borrower Rating Methodology,” and clarification surrounding liquidating loans identified by Morningstar DBRS as troubled.

The updates supersede the following previous versions:

-- “North American Single-Asset/Single-Borrower Ratings Methodology” (October 19, 2023);
-- “North American CMBS Multi-Borrower Rating Methodology” (November 3, 2023); and
-- “North American CMBS Surveillance Methodology” (March 16, 2023).

The updates are effective as of March 1, 2024. Morningstar DBRS deems the updates not to be material and determined that no ratings are expected to change as a result of these updates.

Notes:
Morningstar DBRS methodologies are publicly available on its website dbrs.morningstar.com under Methodologies & Criteria.

For more information on this methodology or on this industry, visit dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.