DBRS Morningstar Assigns Rating of A (sf), Stable Trend, to Mortgage Loan Made to 527727:11 John Hancock 1111 Pennsylvania Avenue Washington, D.C Capital Relief

DBRS, Inc. (DBRS Morningstar) assigned a rating of A (sf) with a Stable trend to the Mortgage Loan due May 1, 2049 (the Mortgage Loan), at a 4.25% average buy-down interest rate, made to 527727:11 John Hancock 1111 Pennsylvania Avenue, Washington, D.C. Capital Relief.

RATING RATIONALE/DESCRIPTION
The 30-year Mortgage Loan is secured by the leased fee interest on a parcel of land at 1111 Pennsylvania Avenue, Washington, D.C., that is improved with a 14-story, 335,328-square-foot Class A office building owned by an institutional investor and subject to a 99-year ground lease from the fee owner.

The A (sf) rating reflects (1) the expected stability of debt payments, given strong operating history and institutional quality sponsorship; (2) a moderate loan-to-value ratio; (3) the property’s strong location in a highly desirable office submarket between the White House and the United States Capitol Building; and (4) the historic occupancy and approximately 10-year remaining lease term to a global law firm ranked the tenth-largest in the United States.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

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

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

The principal methodology is North American Single-Asset/Single-Borrower Ratings Methodology (March 2, 2021), which can be found on dbrsmorningstar.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 dbrsmorningstar.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 DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482/baseline-macroeconomic-scenarios-application-to-credit-ratings.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482/baseline-macroeconomic-scenarios-application-to-credit-ratings.

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

This rating was initiated at the request of the Lender.

The rated entity or its related entities did not 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.

This rating was disclosed to the John Hancock Life Insurance Company.

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

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