DBRS Morningstar Confirms All Classes of FREMF 2020-K107 Mortgage Trust, Series 2020-K107

DBRS Limited (DBRS Morningstar) confirmed the ratings on all classes of the Multifamily Mortgage Pass-Through Certificates, Series 2020-K107 issued by FREMF 2020-K107 Mortgage Trust, Series 2020-K107 as follows:

-- Class A1 at AAA (sf)
-- Class A2 at AAA (sf)
-- Class X1 at AAA (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of this transaction since issuance. According to the February 2022 remittance, all 50 of the original loans secured by multifamily properties remain in the trust, representing a nominal collateral reduction of 0.15% since issuance caused by scheduled loan amortization. There are no loans in special servicing. Four loans are on the servicer’s watchlist, representing 4.5% of the pool balance. The watchlisted loans are being monitored for low debt service coverage ratios (DSCRs) because of a decline in occupancy rates and/or revenues, or fire damage sustained at the subject properties; however, the servicer noted that there are sufficient insurance proceeds to complete the necessary repairs. Based on the year-end 2020 financials, the pool reported a weighted-average DSCR of 2.01 times (x), compared with the DBRS Morningstar DSCR of 1.62x.

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.

Class X1 is an 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 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 related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrsmorningstar.com.

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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