Morningstar DBRS Upgrades Credit Ratings on Three Classes of BSPRT 2022-FL8 Issuer, Ltd.

DBRS, Inc. (Morningstar DBRS) upgraded its credit ratings on three classes of commercial mortgage-backed notes issued by BSPRT 2022-FL8 Issuer, Ltd.:

-- Class B to AAA (sf) from AA (high) (sf)
-- Class E to A (high) (sf) from A (low) (sf)
-- Class F to BBB (high) (sf) from BBB (sf)

In addition, Morningstar DBRS confirmed the following credit ratings:

-- Class A Notes at AAA (sf)
-- Class A-S Notes at AAA (sf)
-- Class C Notes at A (high) (sf)
-- Class D Notes at A (high) (sf)
-- Class G Notes at BBB (low) (sf)
-- Class H Notes at BB (sf)

All trends are Stable.

The credit rating upgrades to Classes B, E and F reflect the increased credit support to the bonds since the previous credit rating action in May 2025, given collateral reduction and the majority of outstanding borrowers continuing to progress with the stated business plans. Since then, seven loans have repaid, resulting in collateral reduction of 10.2%, the largest of these loans being Kenect Phoenix (Prospectus ID#49, formerly 6.1% of the pool). Additionally, the transaction benefits from consisting solely of collateral secured by multifamily properties, which have historically proven to be better able to retain property value and cash flow compared with other property types.

While select loans have exhibited performance concerns, Morningstar DBRS expects the lender and the borrowers of these loans to negotiate loan modifications to extend maturity dates, if necessary. Any loan modifications would likely require additional equity infusions from borrowers in the form of principal curtailments, the purchase of new interest rate cap agreements, or deposits into existing reserve accounts. Further, the transaction benefits from significant credit support to the bonds rated investment-grade by Morningstar DBRS as the bonds rated below investment-grade by Morningstar DBRS have a cumulative balance of $147.0 million. In conjunction with this press release, Morningstar DBRS has published a Surveillance Performance Update report with in-depth analysis and credit metrics for the transaction as well as business plan updates on select loans. For access to this report, please click on the link under Related Documents below or contact us info-DBRS@morningstar.com.

The transaction closed in February 2022, with the initial pool consisting of 26 floating-rate mortgages secured by 34 mostly transitional multifamily properties with a cut-off date balance totaling approximately $1.03 billion (87.3% of the total fully funded balance). Most of the loans were in a period of transition with plans to stabilize performance and improve the asset value. The transaction included a 180-day ramp-up acquisition period, which allowed the issuer to contribute additional loan collateral up to the maximum principal balance of $1.2 billion. Additionally, the transaction had a Reinvestment Period that expired with the February 2024 payment date. As of the July 2025 remittance, the pool comprises 26 loans secured by 48 properties with a cumulative trust balance of $736.4 million, representing a collateral reduction of 38.6% since issuance.

The loans are primarily secured by properties in suburban markets, which Morningstar DBRS defines as markets with a Morningstar DBRS Market Rank of 3, 4, or 5. As of July 2025, 18 loans, representing 67.3% of the current trust balance, are secured by properties in suburban markets. An additional six loans, representing 25.7% of the current trust balance, are secured by properties in tertiary markets, defined as markets with a Morningstar DBRS Market Rank of 1 or 2. Only one loan, representing 3.0% of the current trust balance, are secured by a property in an urban market, with a Morningstar DBRS Market Rank of 7. There are no loans in the pool that are secured by properties with a Morningstar DBRS Market Rank of 6.

Leverage across the pool has increased from issuance levels as the current weighted-average (WA) as-is appraised value loan-to-value (LTV) ratio is 75.8%, with a current WA stabilized LTV ratio of 70.1%. In comparison, these figures were 73.0% and 65.5%, respectively, at issuance. Morningstar DBRS recognizes that select property values may be inflated as the majority of the individual property appraisals were completed in 2022 and 2023 and may not reflect the current rising interest rate or widening capitalization rate environment. For a select number of loans that are exhibiting increased credit risk from issuance, including the pool's only specially serviced loan, Cedar Grove Multifamily Portfolio (Prospectus ID#42; 0.1% of the pool), which transferred to the special servicer in January 2024 for monetary default, Morningstar DBRS applied upward LTV adjustments across 20 loans, representing 89.1% of the pool, in the analysis for this review.

Through July 2025, the collateral manager had advanced cumulative loan future funding of $81.5 million to 18 of the outstanding individual borrowers. The loan with the largest future funding advances to date is the specially serviced loan, Cedar Grove Multifamily Portfolio (trust balance of $239,213). The current whole loan amount of $776,335, with pieces secured in several conduit transactions, including three transactions that are rated by Morningstar DBRS (BSPRT 2021-FL6, BSPRT 2021-FL7, and BSPRT 2022-FL9). The loan was originally secured by 15 properties that were predominantly concentrated in the Charlotte, North Carolina, metropolitan statistical area. The borrower used the future funding advances of $26.2 to complete unit interior and property wide upgrades across the portfolio. The loan is currently deemed a matured nonperforming loan after surpassing its June 2025 maturity. Since issuance, the collateral manager has successfully sold 10 properties and of the five properties that were foreclosed on, only the Cobb House property remains as loan collateral.

An additional $22.3 million of future loan funding allocated to eight of the outstanding individual borrowers remains available. The largest portion of available funds ($6.6 million) is allocated to the borrower of the Copperfield Apartments loan (Prospectus ID#57; 2.7% of the pool), which was added to the trust in April 2024. The loan is secured by 10 garden-style multifamily properties in Fort Worth, Texas. The available funds are allocated toward the borrower's capital improvements project, which is expected to be completed in March 2027.

As of July 2025, there are eight loans (representing 40.4% of the pool) on the servicer's watchlist, which are primarily flagged for low debt service coverage ratios and occupancy rates. There are only two loans, collectively representing 3.2% of the pool, that are late on their current payment. Per the July 2025 reporting, 18 loans (representing 70.8% of the pool) have been modified. Loan modification terms have included maturity extensions, rolling renovation reserves, and renewing replacement caps, among others. The collateral manager identified six loans (representing 22.2% of the pool) with scheduled maturity dates through November 2025, including the Cedar Grove Multifamily Portfolio loan. While the majority of the borrowers on the loans are currently evaluating their options, all of these loans are structured with extension options. For the largest loan in the pool, Graces Reserve & Gashes Creek (Prospectus ID#32, 11.5% of the pool), which has achieved property stabilization and has a maturity date in September 2025, the collateral manager has confirmed that the Graces Reserve Apartments property is under contract to sell in Q3 2025, and the borrower plans on extending the loan with just the Reserve at Gashes Creek property as collateral.

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.

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 (28 February 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 C, D, G, H materially deviate from the credit ratings 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 ratings 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 ratings. The rationale for the material deviations on Classes C and D is the structural features (loan or transaction) and/or provisions in other relevant methodologies outweigh the quantitative model output as the issuer is allowed to defer interest due to these bondholders. The rationale for the material deviations for Classes G and H is sustainability of loan performance trends not demonstrated, as a number of loans have upcoming loan maturity in the next six months and the underlying properties have yet to stabilize.

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 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, Inc.
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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 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

Legal Criteria for U.S. Structured Finance (December 03, 2024)
https://dbrs.morningstar.com/research/444064

Interest Rate Stresses for U.S. Structured Finance Transactions (March 27, 2025)
https://dbrs.morningstar.com/research/450750

North American CMBS Multi-Borrower Rating Methodology (April 09, 2025)/North American CMBS Insight Model v 1.3.0.0
https://dbrs.morningstar.com/research/451739

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