BANK 2019-BNK21: Rating Report

DBRS, Inc. (DBRS Morningstar) finalized its provisional ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2019-BNK21 (the Certificates) issued by BANK 2019-BNK21 (the Issuer).

The collateral consists of 49 fixed-rate loans secured by 87 commercial and multifamily properties. The transaction is a sequential-pay pass-through structure. The conduit pool was analyzed to determine the provisional ratings, reflecting the long-term probability of loan default within the term and its liquidity at maturity. Three loans, representing a combined 22.4% of the pool, are shadow-rated investment grade by DBRS Morningstar. When the cut-off loan balances were measured against the DBRS Morningstar Stabilized net cash flow and their respective actual constants, none of the loans had a DBRS Morningstar Term debt service coverage ratio below 1.15 times, a threshold indicative of a higher likelihood of mid-term default. However, the pool includes 15 loans, representing a combined 21.7% of the pool by allocated loan balance, with issuance loan-to-value (LTV) ratios equal to or in excess of 67.1%, a threshold historically indicative of above-average default frequency. The weighted-average (WA) LTV of the pool at issuance was is 60.9%, and the pool is scheduled to amortize down to a WA LTV of 57.8% at maturity.