DBRS Morningstar Confirms Ratings on All Classes of FREMF 2020-K105 Mortgage Trust, Series 2020-K105

DBRS Inc. (DBRS Morningstar) confirmed its ratings on the following classes of Commercial Mortgage Pass-Through Certificates (the Certificates) issued by FREMF 2020-K105 Mortgage Trust, Series 2020-K105:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class X-1 at AAA (sf)
-- Class X2-A at AAA (sf)
-- Class XAM at AA (low) (sf)
-- Class A-M at A (high) (sf)
-- Class X2-B at BBB (high) (sf)
-- Class B at BBB (high) (sf)
-- Class C at BBB (sf)

All trends are Stable.

The ratings confirmations reflect the overall stable performance of the pool since issuance. There are currently no loans in special servicing and no loans are delinquent. As of the January 2022 remittance, all of the original 71 fixed-rate loans remain in the pool. Two loans, representing 5.9% of the pool, are on the servicer's watchlist for non-performance-related reasons. For loans reporting updated financials, the weighted-average debt service coverage ratio (DSCR) is 2.02 times (x), compared with the DBRS Morningstar issuance DSCR of 1.49x.

Given the limited seasoning, there has been minimal change to credit enhancement since issuance. Twelve loans, representing 26.8% of the pool, are full-term interest-only (IO). An additional 56 loans representing 70.5% of the pool have partial IO terms, the majority of which have not yet begun to amortize. As a result, there has been very little amortization to date, with collateral reduction of only 0.11% as of the most recent remittance. There are currently no defeased loans.

The pool consists of 71 fixed-rate loans secured by 48 garden-style properties, 10 midrise properties, five manufactured housing communities, three student housing complexes, two townhome communities, and one classified as high rise, one as independent living, and one as other. The property classified as other is a 20-unit garden-style development in Las Vegas that provides housing to formerly homeless U.S. military veterans. One group of loans, the Landmark Student Housing Portfolio (comprising Nine at Tallahassee, The Nine at Rio, and Nine at West Campus), are cross-collateralized.

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.

Class X-1, X2-A, X2-B, and XAM are interest-only (IO) certificate that references 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.

The DBRS Viewpoint platform provides additional information on this transaction and underlying loans including DBRS Morningstar metrics, commentary, servicer-reported cash flows, and other performance-related data.

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 the North American CMBS Surveillance Methodology (March 21, 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 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.

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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