Fitch Ratings has affirmed five classes of Hudson Yards 2019-30HY Mortgage Trust Commercial Mortgage Pass-Through Certificates.
The Rating Outlooks remain Stable.
RATING ACTIONS
Entity / Debt
Rating
Prior
Hudson Yards 2019-30HY
A 44421GAA1
LT
AAAsf
Affirmed
AAAsf
B 44421GAE3
LT
AA-sf
Affirmed
AA-sf
C 44421GAG8
LT
A-sf
Affirmed
A-sf
D 44421GAJ2
LT
BBB-sf
Affirmed
BBB-sf
X 44421GAC7
LT
AA-sf
Affirmed
AA-sf
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VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Stable Performance: The affirmations reflect the continued stable performance of the asset, prime location and high quality of the collateral, and fully occupied space by a credit-worthy tenant. The most recent servicer-reported YE 2021 net cash flow (NCF) debt service coverage ratio (DSCR) was 2.28x consistent with YE 2020 and YE 2019 for the interest-only loan.
Trophy Quality Asset: The subject property is a trophy office tower and was designed to be LEED Gold Core & Shell certified, with large, column free floor plates, floor-to-ceiling windows and state of the art systems. The subject's tenant, WarnerMedia, has invested approximately
Fitch Leverage: The
Long-Term Lease to Investment
Institutional Sponsorship: The sponsor of the loan is a joint venture among Related, Arizona State Retirement System and two affiliates of
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
A sustained decline in collateral occupancy;
A significant deterioration in property cash flow.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
A significant increase in cash flow.
Best/Worst Case Rating Scenario
International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
Hudson Yards 2019-30HY
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.
Additional information is available on www.fitchratings.com
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