Morningstar DBRS Confirms Credit Ratings on All Classes of BANK 2019-BNK24

DBRS Limited (Morningstar DBRS) confirmed its credit ratings on the Commercial Mortgage Pass-Through Certificates, Series 2019-BNK24 issued by BANK 2019-BNK24 (the Issuer) as follows:

-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class B at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AAA (sf)
-- Class C at AA (low) (sf)
-- Class D at A (low) (sf)
-- Class X-D at A (low) (sf)
-- Class E at BBB (high) (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 reflect the overall stable performance of the transaction since the previous Morningstar DBRS credit rating action in July 2024.

As of the June 2025 remittance, 70 of the 71 original loans remain in the pool, with a trust balance of $1.2 billion, reflecting a collateral reduction of 1.85% since issuance. There are currently no loans in special servicing and 16 loans, representing 16.4% of the pool, on the servicer's watchlist. Two loans, representing 1.3% of the pool, are defeased. Although the transaction includes a significant concentration of loans secured by office properties (33.1% of the pool), the performance of the underlying office collateral remains stable with only one large loan, Galleria 57 (Prospectus ID #8, 4.3% of the pool), currently on the servicer's watchlist. Additionally, of the nine office properties in the pool, two of the loans, 55 Hudson Yards (Prospectus ID#1, 8.3% of the pool) and Park Tower at Transbay (Prospectus ID#9, 4.2% of the pool), are shadow-rated investment grade by Morningstar DBRS. For the purposes of this credit rating action, Morningstar DBRS made adjustments to five office loans in the pool, including 1412 Broadway (Prospectus ID#3, 8.3% of the pool) and Galleria 57, which demonstrated an improvement in performance over the past year.

The largest loan on the servicer's watchlist, Galleria 57, is secured by a 180,000-square-foot (sf) office property in Midtown Manhattan. The loan has been monitored on the servicer's watchlist since November 2023 after the property's former largest tenant, Spa Castle (previously 22.4 % of net rentable area (NRA)), vacated ahead of its original October 2034 lease expiry. According to the December 2024 rent roll, the property's occupancy rate was reported at 57%, a slight decline from 58% as of YE2023. Tenant rollover risk is elevated over the next 12 months, as tenants occupying 31.0% of NRA have scheduled lease expirations. This includes the collateral's largest tenant, East 58 Parking (12.5% of NRA), with an upcoming lease expiry in September 2025. Morningstar DBRS does not expect occupancy to drop significantly in the near future, however, as the departure of the East 58 Parking tenant is unlikely, given it has been at the property since 1995. In addition, the remainder of the subject's rent roll is quite granular with no individual tenant with an upcoming lease expiration occupying greater than 3.0% of NRA. According to the YE2024 financial reporting, the collateral generated net cash flow (NCF) of $4.1 million, corresponding to a debt service coverage ratio (DSCR) of 2.23 times (x), a significant increase over the YE2023 figure of $2.75 million (DSCR of 1.50x), but below the Morningstar DBRS issuance figure of $3.51 million (DSCR of 2.44x). The improvement in NCF is mainly driven by a decrease in vacancy loss, most likely resulting from the termination of rent abatement and concession periods for certain tenants. To account for the improvement in the loan's financial performance, Morningstar DBRS analyzed this loan with reduced loan-to-value ratio (LTV) and probability of default (POD) penalties in its current analysis. The resulting loan expected loss (EL) remains elevated, at more than 3.5x the EL for the pool.

One of three largest loans in the pool, 1412 Broadway (Prospectus ID#3, 8.3% of the pool) is secured by a 24-story, Class B office building in Manhattan's Fashion District. The loan was previously monitored on the servicer's watchlist for a low DSCR and was removed in September 2024. According to YE2024 financials, the collateral reported NCF of $12.7 million (reflecting a DSCR of 1.64x), a 38.0% increase compared with the YE2023 figure of $9.2 million (reflecting a DSCR of 1.19x) and above the Morningstar DBRS figure of $12.6 million (DSCR of 1.92x). As per the April 2025 rent roll, the subject's occupancy improved to 96.1% from 85.0% at YE2023. Tenant rollover risk includes 4.1% of NRA with scheduled lease expirations in the next 12 months and 23.4% of NRA rolling prior to YE2026. This includes the property's largest tenant, Kasper Group LLC (16.9% of NRA), with a lease expiration in August 2026. The loan is sponsored by the Chetrit family, which operates Chetrit Group, a privately held New York City real estate investment firm that is reported to be involved in a mortgage fraud scandal, as per the Reuters news article posted on March 10, 2025. In its current analysis, Morningstar DBRS applied updated LTV and POD penalties to reflect the current risk profile of the loan, which resulted in an EL greater than 3.5x the EL of the pool.

At issuance, Morningstar DBRS shadow-rated four loans, representing 22.9% of the current trust balance, as investment grade, which included 55 Hudson Yards, Jackson Park (Prospectus ID#2, 8.3% of the pool), Park Tower at Transbay, and ILPT Industrial Portfolio (Prospectus ID#15, 2.1% of the pool). With this review, Morningstar DBRS confirms that the performance of all four loans remains in line with the shadow ratings assigned at issuance.

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 (May 16, 2025): https://dbrs.morningstar.com/research/454196.

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 Surveillance Methodology (February 28, 2025): https://dbrs.morningstar.com/research/448963.

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

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 info-DBRS@morningstar.com.

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.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

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

DBRS Limited
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Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577

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 (April 9, 2025)/North American CMBS Insight Model v 1.3.0.0: https://dbrs.morningstar.com/research/451739
-- Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024): https://dbrs.morningstar.com/research/439702
-- Legal Criteria for U.S. Structured Finance (December 3, 2024): https://dbrs.morningstar.com/research/444064
-- North American Commercial Mortgage Servicer Rankings (August 23, 2024): https://dbrs.morningstar.com/research/438283

A description of how Morningstar DBRS analyzes structured finance transactions and how the methodologies are collectively applied can be found at (July 17, 2023): https://dbrs.morningstar.com/research/417279.

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