DBRS Morningstar Confirms All Classes of BANK 2019-BNK22

DBRS Limited (DBRS Morningstar) confirmed its ratings on the Commercial Mortgage Pass-Through Certificates, Series 2019-BNK22 issued by BANK 2019-BNK22 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-SB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class B at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AA (high) (sf)
-- Class C at AA (sf)
-- Class D at A (sf)
-- Class X-D at A (low) (sf)
-- Class E at BBB (high) (sf)
-- Class X-F at BBB (sf)
-- Class F at BBB (low) (sf)
-- Class X-G at BB (high) (sf)
-- Class G at BB (sf)
-- Class X-H at BB (low) (sf)
-- Class H at B (high) (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction since the last rating action. At issuance, the transaction consisted of 58 fixed-rate loans secured by 131 commercial and multifamily properties with an aggregate trust balance of $1.2 billion. As of the May 2022 remittance, all of the original loans remain in the pool with a current trust balance of $1.19 billion. The pool benefits from one loan, representing 7.0% of the current pool balance, that is fully defeased.

One loan, The Blvd (Prospectus ID#23, 1.2% of the pool), is in special servicing. The Blvd is secured by a recently built 42,472-square-foot (sf) unanchored retail property in Myrtle Beach, South Carolina. The loan transferred to special servicing in April 2020 following the borrower’s request for relief in light of performance disruptions as a result of the Coronavirus Disease (COVID-19) pandemic. The loan is current, and the special servicer and borrower are reportedly negotiating a full payoff.

There are 13 loans on the servicer’s watchlist, representing 9.42% of the pool. The largest loan on the servicer’s watchlist, East Side Manhattan Multifamily Portfolio (Prospectus ID#10, 3.7% of the pool) is secured by a multifamily portfolio of four properties with a total unit count of 138 situated in New York City. The loan was added to the servicer’s watchlist in September 2021 for a low debt service coverage ratio, which was reported at 1.31 times (x) at YE2021, down from 1.65x at YE2020. The decline is reportedly due to rental reductions of approximately 25.0% during the coronavirus pandemic in an effort to maintain occupancy. The occupancy rate dropped to 78.0% in December 2020 but has steadily improved to 97.1% as of February 2022. Only 13 of the 138 units currently received rental reductions ranging from 5.0% to 15.0%. As rental concessions burn off, DBRS Morningstar expects performance to restabilize.

At issuance, DBRS Morningstar shadow-rated three loans investment grade, Park Tower at Transbay (Prospectus ID#1, 9.6% of the pool), 230 Park Avenue South (Prospectus ID#2, 9.2% of the pool), and Midtown Center (Prospectus ID#3, 7.4% of the pool). Credit metrics for these loans remain strong, in line with issuance expectations. With this review, DBRS Morningstar confirms the characteristics of these loans remain consistent with the investment-grade shadow ratings they were assigned at issuance.

ENVIRONMENTAL, SOCIAL, and GOVERNANCE (ESG) CONSIDERATIONS
There were no environmental, social, and governance factors that had a significant or relevant effect on the credit analysis.

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/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

Classes X-A, X-B, X-D, X-F, X-G, and X-H 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 this transaction.

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.

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

The principal methodology is North American CMBS Surveillance Methodology (March 4, 2022), 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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