Morningstar DBRS Confirms Credit Ratings on All Classes of Arbor Multifamily Mortgage Securities Trust 2020-MF1 With Positive Trends on Five Classes

DBRS Limited (Morningstar DBRS) confirmed all credit ratings on the classes of Multifamily Mortgage Pass-Through Certificates, Series 2020-MF1 issued by Arbor Multifamily Mortgage Securities Trust 2020-MF1 as follows:

-- Class A-1 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class AS at AAA (sf)
-- Class B at AA (sf)
-- Class C at AA (sf)
-- Class D at A (high) (sf)
-- Class E at BBB (high) (sf)
-- Class X-A at AAA (sf)
-- Class X-D at A (low) (sf)

The trends on Classes B, C D, X-D, and E are Positive. All other trends are Stable.

The credit rating confirmations and Positive trends reflect Morningstar DBRS' continued healthy, but overall unchanged view of the transaction since last review in May 2025 as part of the finalization of the "North American CMBS Multi-Borrower Rating Methodology" and Updates to the CMBS Insight Model. As part of that review, Morningstar DBRS' upgraded its credit ratings on Classes C, D, X-D, and E, and assigned the Positive trends as a result of both model and credit related impacts. For further information on that credit rating action, please see the press release dated May 1, 2025, on the Morningstar DBRS website.

The transaction consists primarily of loans secured by multifamily assets that continue to report strong financial performance in addition to the significant defeasance, contributing to increased credit support across the transaction. In addition, the unrated Class FRR has sizable existing balance of $63.6 million providing insulation to the remaining bonds in the event of any potential losses, further supporting the credit rating actions.

As of the June 2025 reporting, all 40 of the original loans remain in the pool, with a marginal collateral reduction of 2.6% from issuance because of scheduled loan amortization. Multifamily properties, represent 37 loans (93.3% of the pool), with the remaining three loans (6.7% of the pool) backed by mixed-use properties. Seven loans, representing 23.8% of the pool, are secured by collateral that has been fully defeased.

There are no loans is special servicing or delinquent. There are three loans on the servicer's watchlist, representing 11.5% of the pool. The two larger loans (9.9% of the pool) were flagged for performance reasons, namely increased expenses; however, revenue continues to outpace issuance figures with occupancy at both properties of higher than 90.0%. Based on the most recent year-end financials from YE2024, excluding defeased loans, the pool reported a weighted-average (WA) Debt Service Coverage Ratio (DSCR) of 1.88 times (x), compared with the YE2023 DSCR of 1.95x and the Morningstar DBRS DSCR of 1.46x.

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.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) 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 and X-D 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 credit ratings assigned to Classes D and E materially deviate from the credit rating implied by the predictive model. Morningstar DBRS typically expects there to be a substantial likelihood that a reasonable investor or other user of the credit rating would consider a three-notch or more deviation from the credit rating stress(es) implied by the predictive model to be a significant factor in evaluating the credit rating. The rationale for the material deviation is that the sustainability of loan performance trends has not been demonstrated since the last review in May 2025, when four classes were upgraded. As a reflection of the continued upward pressure and relatively unchanged credit outlook since May 2025, the trends are Positive and Morningstar DBRS will evaluate performance trends with the next review.

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 ratings were initiated at the request of the rated entity.

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

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

These are solicited credit ratings.

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 17g-7 disclosure report and/or the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.

As applicable, the conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS' outlooks and credit ratings are monitored.

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.

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

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

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