Morningstar DBRS Confirms Credit Ratings on All Classes of BANK 2020-BNK30

DBRS, Inc. (Morningstar DBRS) confirmed its credit 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.

The credit rating confirmations and Stable trends reflect the overall stable performance of the underlying loans in the pool as evidenced by a strong weighted-average (WA) debt service coverage ratio (DSCR) of 3.27 times (x) and the healthy WA debt yield of more than 11.2% based on the most recent financials reported. While the pool is concentrated by property type, with office properties representing 43.7% of the pool, those loans are performing as expected with a WA DSCR of 3.53x, suggesting the term risks remain generally low. The pool also benefits from three loans--605 Third Avenue (Prospectus ID#1; 10.1% of the pool), McDonald's Global HQ (Prospectus ID #4; 7.0% of the pool), and The Grace Building (Prospectus ID#6; 7.6% of the pool) that Morningstar DBRS shadow rated as investment grade at issuance and maintained as such with this review--that all have low expected losses.

Despite this, Morningstar DBRS' analysis considered stressed loan-to-value ratios (LTVs) for each of the office loans in the pool. The resulting WA expected loss for these loans was still below the overall pool average. Morningstar DBRS also noted significant credit support provided by the unrated and below-investment-grade-rated certificates in the capital stack.

As of the October 2024 remittance, all 40 of the original loans remain in the pool, and there has been limited collateral reduction of only 3.24% since issuance. No loans are in special servicing, and only one loan, McDonald's Global HQ, is on the servicer's watchlist for failure to submit financials, however, the property remains 92% occupied by McDonald's with the only termination option co-terminous with the loan's maturity in November 2030. As noted above, the pool is quite concentrated by property type with office-, retail-, and industrial-backed loans comprising 43.7%, 33.9%, and 10.2% of the pool, respectively. Six loans securitized in the subject transaction and comprising 33.8% of the pool are pari passu with notes securitized in the BANK 2020-BNK29 transaction, which Morningstar DBRS reviewed in September 2024.

As mentioned previously, the office loans in the transaction continue to exhibit very strong credit metrics, supported by high DSCRs and low short-term risk. Of the office loans, three, representing 24.7% of the pool, are secured by two Class A and one Class B office properties in Manhattan. The Class A properties, 605 Third Avenue and The Grace Building, both have occupancy rates above 95%, and the Class B property, 250 W 57th Street (Prospectus ID#7; 7.0% of the pool), reported an 84.7% occupancy rate as of the June 2024 operating statement analysis report. All of the properties have low rollover risk in the near term and all reported healthy DSCRs above 2.9x as of the YE2023 financials.

At issuance, 605 Third Avenue, McDonald's Global HQ, and The Grace Building were assigned investment-grade shadow ratings by Morningstar DBRS. With this review, Morningstar DBRS confirms the performance of these loans remains consistent with investment-grade characteristics based on strong credit metrics and continued stable performance.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.
 
A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024), https://dbrs.morningstar.com/research/437781.

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 credit ratings are subject to surveillance, which could result in credit ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by Morningstar DBRS.

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

The principal methodology is North American CMBS Multi-Borrower Rating Methodology (March 01, 2024), https://dbrs.morningstar.com/research/428797.

Other methodologies referenced in this transaction are listed at the end of this press release.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.

DBRS, Inc.
22 West Washington Street
Chicago, IL 60602 USA
Tel. +1 312 332-3429

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

-- North American CMBS Multi-Borrower Rating Methodology (March 01, 2024) / North American CMBS Insight Model v 1.2.0.0,
https://dbrs.morningstar.com/research/428797.

-- Rating North American CMBS Interest-Only Certificates (June 28, 2024),
https://dbrs.morningstar.com/research/435294

--Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024), https://dbrs.morningstar.com/research/439702

--North American Commercial Mortgage Servicer Rankings (August 23, 2024),
https://dbrs.morningstar.com/research/438283

--Legal Criteria for U.S. Structured Finance (April 15, 2024),
https://dbrs.morningstar.com/research/431205

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