DBRS Morningstar Confirms All Ratings on BANK 2018-BNK13

DBRS, Inc. (DBRS Morningstar) confirmed its ratings on the Commercial Mortgage Pass-Through Certificates, Series 2018-BNK13 issued by BANK 2018-BNK13 as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-5 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class B at AA (sf)
-- Class X-B at A (sf)
-- Class C at A (low) (sf)
-- Class X-D at BBB (sf)
-- Class D at BBB (low) (sf)
--Class X-E at BB (sf)
-- Class E at BB (low) (sf)
-- Class X-F at B (sf)
-- Class F at B (low) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the underlying loans in the transaction. At issuance, the trust consisted of 62 fixed-rate loans secured by 80 commercial, hospitality, and multifamily properties with an original balance of $944.2 million. As of the November 2021 remittance report, all of the original loans remain in the pool and there has been a nominal collateral reduction of 4.8% since issuance. The collateral pool is concentrated by property type with the highest concentration by loan balance comprising office assets (13 properties accounting for 35.9% of the current pool balance). Retail assets account for the second greatest property type concentration, with 24 properties that represent 35.8% of the current pool balance.

As of the November 2021 remittance period, two loans, representing 2.9% of the current pool balance, were with the special servicer. The Florida Hotel & Conference Center loan (Prospectus ID#10; 4.4% of current pool) was returned to the master servicer as a corrected mortgage as of July 2021. The loan, secured by a 511-key, full-service hotel in Orlando transferred to the special servicer in October 2020 for payment default after requesting coronavirus-related relief in April 2020. The request for relief was denied and the borrower eventually brought the loan current in April 2021. The loan remains on the servicer’s watchlist as performance remains below breakeven. A new appraisal reported in December 2020 valued the property at $54.9 million, comfortably in excess of the current loan balance.

The Courtyard – Myrtle Beach loan (Prospectus ID#22; 1.3% of current pool) also transferred to the special servicer after a coronavirus-related relief request. The loan was modified in August 2021, providing waivers of furniture, fixtures, and equipment reserves among other terms. The loan is in the process of being returned to the master servicer. Despite the performance trending downward through YE2019, a post-transfer appraisal still valued the property in excess of the loan balance.

Fourteen loans, representing 22.5% of the current pool balance, are on the servicer’s watchlist. The Ditson Building (ID#11; 4.2% of the pool) was added to the watchlist in January 2021 because of declining financial performance. The largest tenant, TTC USA Consulting (47.2% of the net rentable area), has a lease that is set to expire in June 2022 and its renewal plans remain uncertain. Since the last review, Shoppes at Chino Hills (Prospectus ID#15; 2.4% of the current pool) has been modified and was returned to the master servicer in March 2021.

At issuance, DBRS Morningstar assigned an investment-grade shadow rating to four loans: Prospectus ID#1 – 1745 Broadway (10.3% of current pool); Prospectus ID#3 – Pfizer Building (4.6% of current pool); Prospectus ID#12 – Fair Oaks Mall (3.6% of current pool); and Prospectus ID#14 – 181 Fremont (2.4% of current pool). With this review, DBRS Morningstar confirmed that the respective performance of each of these loans remains consistent with the characteristics of an investment-grade loan.

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.

Classes X-A, X-B, X-D, X-E, 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 ratings are subject to surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by DBRS Morningstar.

DBRS Morningstar provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- Prospectus ID#10 – Florida Hotel & Conference Center (4.4% of the pool)
-- Prospectus ID#11 – Ditson Building (4.2% of the pool)

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.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.

The principal methodology is North American CMBS Surveillance Methodology (March 26, 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.

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. Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The DBRS Morningstar long-term rating scale definition indicates that ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.

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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