Morningstar DBRS Changes Trends on Six Classes of Citigroup Commercial Mortgage Trust 2020-GC46 to Stable From Negative, Confirms Credit Ratings on All Classes

DBRS Limited (Morningstar DBRS) confirmed its credit ratings on all classes of Commercial Mortgage Pass-Through Certificates, Series 2020-GC46 issued by Citigroup Commercial Mortgage Trust 2020-GC46 as follows:

-- Class A-2 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class A-AB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A 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 BBB (high) (sf)
-- Class X-D at BBB (sf)
-- Class E at BBB (low) (sf)
-- Class X-F at BB (low) (sf)
-- Class F at B (high) (sf)
-- Class G-RR at B (sf)

Morningstar DBRS changed the trends on Classes D, E, F, G-RR, X-D, and X-F to Stable from Negative. The trends on all other classes are Stable.

The credit rating confirmations reflect the overall stable performance of the transaction, which remains in line with DBRS Morningstar's expectations since the last rating action. While certain challenges for the pool remain, including increased loss expectations for a concentration of larger loans and concerns over a high concentration of loans secured by office properties, the assigned credit ratings accurately reflect the current credit risks associated with the transaction, warranting the resolution of the Negative trends.

The pool is otherwise performing well, as evidenced by a healthy weighted-average (WA) debt service coverage ratio (DSCR) of 2.63 times (x), based on the most recent year-end financial reporting. Additionally, the transaction benefits from having four loans, representing 17.9% of the pool and being shadow-rated as investment grade by Morningstar DBRS, including two of the top 10 loans in the pool. While some of the larger loans in the pool have underperformed compared with issuance expectations, including 650 Madison Avenue (Prospectus ID#1; 10.1% of the pool), 805 Third Avenue (Prospectus ID#7; 4.0% of the pool), and the sole special-serviced loan, Parkmerced (Prospectus ID#18; 2.4% of the pool), these loans are generally well positioned despite the increased risks in each case, with each loan also benefiting from subordinate debt held outside the trust and relatively low going-in loan-to-value ratios (LTVs) on the senior debt held in the subject transaction.

According to the August 2025 reporting, 44 of the original 46 loans remain in the pool with a trust balance of $1.1 billion, reflecting a collateral reduction of 6.5% since issuance. By property type, the pool is most concentrated by loans secured by office properties or mixed-use properties with a significant office component, collectively representing 35.7% of the pool, followed by retail properties, representing 24.1% of the pool. Two loans, representing 0.8% of the pool, have been fully defeased. Eighteen loans, representing 44.6% of the pool, are being monitored on the servicer's watchlist, primarily for low DSCRs, low occupancy, and/or deferred maintenance items.

The 650 Madison loan is collateralized by a Class A office and retail tower that consists primarily of approximately 544,000 square feet (sf) of office space, with ground-floor retail and storage space comprising the remaining space. The trust loan represents a pari passu portion of the $586.8 million senior loan that combines with subordinate debt for a whole loan of $800.0 million. The loan has been on the servicer's watchlist since April 2023 due to a low DSCR, driven by the departure of several tenants. As of June 2025, servicer reporting indicated a DSCR of 0.88x with an occupancy rate of 81.0% for the trailing six months ended June 30, 2025, well below the occupancy rate of 97.0% at closing. Occupancy is expected to fall further following the servicer-confirmed downsizing of the largest tenant, Ralph Lauren (originally 46.1% of the NRA at issuance), which will vacate 102,756 sf (17.1% of the NRA) upon lease expiration in November 2025. The tenant has signed a long-term extension for the remainder of its space (22.2% of the NRA) through April 2036, however, at the notably lower base rent of $63.00 per square foot (psf; subject to an 8.0% annual escalation) compared with the tenant's former rate of $75.20 psf. Although the second-largest tenant, BC Partners Inc. (currently 4.3% of the NRA; lease expiration in April 2024), has agreed to extend its lease through August 2037 and expand its space to 7.4% of the NRA, its new base rental rate is also lower than its former rate, with no tenant improvement allowance. Both tenants were given one year of free rent as part of their respective long-term renewals. In anticipation of further net cash flow (NCF) decline, Morningstar DBRS considered an elevated LTV and probability of default (POD), resulting in an expected loss (EL) that was more than 2.5x the pool's WA EL. Mitigating factors include strong sponsorship provided by Vornado and Oxford Properties, the building's quality, and its desirable location close to major landmarks, including Central Park and the Rockefeller Center.

The 805 Third Avenue loan is secured by a Class A building that consists of a 565,000-sf office tower and a 31,000-sf three-story retail pavilion. The trust loan of $45.0 million represents a pari passu portion of the $150.0 million of senior debt, part of a larger whole loan that includes $125.0 million in subordinate debt. The loan was transferred to special servicing for imminent default in September 2024, however, it was returned to the master servicer in February 2025 and brought current with the April 2025 payment period. While the loan remains current, cash management is active and the loan is being monitored on the watchlist for low DSCR, most recently reported at 0.81x on the senior debt as of YE2024, as a result of the collateral's sustained low occupancy rate, which was most recently reported at 57.6%. The largest remaining tenant at the property is Meredith Corporation (36.0% of the NRA; lease expiration in December 2026), which is currently subleasing nearly all of its space to three firms after moving to Brookfield Place in 2018. The tenant had reportedly been planning to terminate its lease at the end of 2024, however, it is still listed on the March 2025 rent roll. For this review, Morningstar DBRS had inquired about additional leasing updates but has yet to receive a response. Another area of concern is the loan's sponsor, Cohen Brothers Realty Corporation, which continues to face financial difficulties, accumulating well over $1.0 billion in loans in default, according to several news articles. To account for the significantly increased risks as outlined for this loan, Morningstar DBRS' analysis considered a stressed scenario to increase the LTV and POD, which resulted in an EL that was nearly 5.5x the pool's WA EL.

The Parkmerced loan is secured by a 3,165-unit apartment complex in San Francisco. The $1.5 billion mortgage whole loan consists of a $547.0 million senior loan and subordinate debt comprising a $708 million B note and a $245.0 million C note. There is also $275.0 million of mezzanine debt in place. The trust debt represents a pari passu portion of the senior loan. The loan was transferred to special servicing at the borrower's request ahead of the December 2024 loan maturity and is now listed as a nonperforming matured balloon. After negotiations over a possible loan modification ended, a receiver was put in place, as the servicer actively pursues foreclosures. The property's occupancy rate remains stable year over year at 80.0%; however, the YE2024 NCF dropped to $31.2 million (a DSCR of 0.64x on the senior debt). According to an article posted in The San Francisco Standard and dated July 2025, the receiver will be investing more than $70.0 million in the property, targeting renovations to more than 400 units, and a new management company has been brought in to improve the property's performance. The property was revalued in April 2025 at $1.4 billion, in line with the July 2024 value, representative of a healthy LTV of 39.10% for the senior debt, suggesting the likelihood of loss to the trust at resolution remains low.

As of August 2025, the pool has four loans that were shadow-rated investment grade at issuance, including 1633 Broadway (Prospectus ID#2; 9.6% of the trust balance), Southcenter Mall (Prospectus ID#3; 5.2% of the trust balance), Bellagio Hotel and Casino (Prospectus ID#20; 1.8% of the trust balance), and 510 East 14th Street (Prospectus ID#31; 1.3% of the trust balance). With this review, Morningstar DBRS confirms that the loan performance trends for these loans remain consistent with their investment-grade shadow ratings.

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 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) at https://dbrs.morningstar.com/research/454196.

Classes X-A, X-B, X-D, and X-F 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 B and C 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 credit ratings. The rationale for the material deviation is uncertain loan-level event risk. Although there is a concentration of loans backed by office collateral that continues to exhibit increased risks in this pool, Morningstar DBRS notes mitigating factors are present, such as low senior debt LTVs driven by the presence of significant subordinate debt, desirable property locations, and generally favorable property quality characteristics. Although the stressed ELs analyzed for those loans are contributing to negative credit ratings pressure in the middle of the capital stack, Morningstar DBRS believes those classes remain well insulated against realized loss. As the stories with those loans continue to evolve, Morningstar DBRS will closely monitor for developments.

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 [email protected].

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 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 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 3, 2024)
https://dbrs.morningstar.com/research/444064

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 (July 17, 2023) https://dbrs.morningstar.com/research/417279.

For more information on this credit or on this industry, visit dbrs.morningstar.com or contact us at [email protected].