DBRS Morningstar Assigns Provisional Ratings to Freddie Mac Structured Pass-Through Certificates, Series K-106

DBRS, Inc. (DBRS Morningstar) assigned provisional ratings to the following classes of Structured Pass-Through Certificates, Series K-106 to be issued by Freddie Mac Structured Pass-Through Certificates, Series K-106:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class X1 at AAA (sf)
-- Class XAM at AA (sf)
-- Class A-M at AA (low) (sf)

All trends are Stable.

Freddie Mac guarantees the (1) timely payment of interest; (2) payment of related principal on the distribution date following the maturity date of each mortgage loan to the extent that such principal would have been distributed to the underlying Class A-1, A-2, and A-M certificates; (3) reimbursement of any realized losses and additional trust fund expenses allocated to the Class A-1, A-2, and A-M certificates; and (4) ultimate payment of principal by the assumed final distribution date for the underlying Class A-1, A-2, and A-M certificates. All classes will be subject to ongoing surveillance by DBRS Morningstar after the date of issuance. The ratings DBRS Morningstar assigns at issuance are based exclusively on the credit provided by the transaction structure and the underlying assets of FREMF 2020-K106 Mortgage Trust, Series 2020-K106 without regard to the Freddie Mac guarantee. DBRS Morningstar may take the Freddie Mac guarantee into consideration for future rating actions.

Classes X1 and XAM 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 ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.

For supporting data and more information on this transaction, please log into www.viewpoint.dbrs.com. DBRS Morningstar provides analysis and in-depth commentary in the DBRS Viewpoint platform.

DBRS Morningstar provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:
-- ProspectusID#01 - 10x Living At Columbia Town Center (8.11% of the pool)
-- ProspectusID#02 - Marc San Marcos (6.85% of the pool)
-- ProspectusID#03 - Belvoir Square (5.04% of the pool)
-- ProspectusID#04 - Torrente, Park West 205 & Marquis Place (4.78% of the pool)
-- ProspectusID#05 - 210 St. Paul (4.12% of the pool)
-- ProspectusID#06 - The Muse (4.10% of the pool)
-- ProspectusID#07 - Springhouse Apartment Homes (3.44% of the pool)
-- ProspectusID#08 - Las Palmas (3.29% of the pool)
-- ProspectusID#09 - Atler At Brookhaven (3.11% of the pool)
-- ProspectusID#10 - The Avenue Apartments (2.90% of the pool)
-- ProspectusID#11 - Rivera Apartments (2.84% of the pool)
-- ProspectusID#12 - Aperture (2.72% of the pool)
-- ProspectusID#13 - Polo Glen Apartments (2.71% of the pool)
-- ProspectusID#14 - 88Twenty (2.61% of the pool)
-- ProspectusID#15 - Stratford Green Apartments (2.60% of the pool)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrs.com. The platform includes issuer and servicer data for most outstanding CMBS transactions (including non-DBRS Morningstar rated), as well as loan-level and transaction-level commentary for most DBRS Morningstar-rated and -monitored transactions.

Notes:
All figures are in U.S. dollars unless otherwise noted.

With regard to due diligence services, DBRS Morningstar was provided with the Form ABS Due Diligence-15E (Form-15E), which contains a description of the information that a third party reviewed in conducting the due diligence services and a summary of the findings and conclusions. While due diligence services outlined in Form-15E do not constitute part of DBRS Morningstar’s methodology, DBRS Morningstar used the data file outlined in the independent accountant’s report in its analysis to determine the ratings referenced herein.

The principal methodology is North American CMBS Multi-borrower Methodology, which can be found on www.dbrs.com under Methodologies & Criteria. For a list of the structured-finance-related methodologies that may be used during the rating process, please see the DBRS Morningstar Global Structured Finance Related Methodologies document, which can be found on www.dbrs.com in the Commentary tab under Regulatory Affairs. Please note that not every related methodology listed under a principal structured finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

The full report providing additional analytical detail is available by clicking on the link under Related Documents below or by contacting us at info@dbrs.com.

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

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

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