M360 2019-CRE2, Ltd.: Rating Report

DBRS, Inc. (DBRS Morningstar) finalized its provisional ratings on the following classes of floating-rate notes issued by M360 2019-CRE2, Ltd. (the Issuer).

The initial collateral consists of 32 floating-rate mortgages secured by 32 mostly transitional properties with a cut-off balance totaling $306.0 million, excluding approximately $71.7 million of future funding commitments. Included in the loan count and cut-off balance are two Targeted Mortgage Assets, representing $18.8 million, which have not yet closed. In addition, there is a 90-day Ramp-Up Period during which the Issuer may acquire additional eligible loans subject to the Eligibility Criteria, resulting in a maximum pool balance of $360.0 million. Most loans are in a period of transition with plans to stabilize and improve the asset value. During the Reinvestment Period, the Issuer may acquire future funding commitments and additional eligible loans subject to the Eligibility Criteria. The transaction stipulates a $1.0 million threshold on pari passu participation acquisitions before a Rating Agency Condition is required if there is already a participation of the underlying loan in the trust.