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 Mortgage Trust

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

Page

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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 $700 million ($478 psf) on the fit-out of its space. Fitch considers the property to be one of Manhattan's highest quality office buildings and assigned it a property quality grade of 'A' at issuance.

Fitch Leverage: The $1,430.0 million mortgage loan has an April 2022 Fitch DSCR and loan-to-value (LTV) of 1.00x and 87.3%, respectively, and debt of $977 psf. The Fitch stressed DSCR, LTV and debt psf through class D, the lowest tranche rated by Fitch in this transaction, are 1.12x, 78.0% and $873 psf, respectively. The total debt package is split between $1.12 billion of senior notes and $310.0 million of junior notes. $698.0 million of the total $1.12 billion senior notes are contributed to this trust, along with the $310.0 million of junior notes.

Long-Term Lease to Investment Grade Tenant: The subject property is 100% occupied by a single tenant, WarnerMedia on a long-term lease. On April 8, 2022, Discovery Inc. and AT&T Inc. announced that they had closed on a transaction that would merge the two companies. Fitch affirmed Discovery Inc.'s rating at 'BBB-'/Outlook Stable and views the merger to be a positive event as it creates the second largest media company, significantly increasing the company's scale. WarnerMedia's parent company, AT&T, was previously rated 'BBB+'/Outlook Stable by Fitch as of March 2021.

Institutional Sponsorship: The sponsor of the loan is a joint venture among Related, Arizona State Retirement System and two affiliates of Allianz. Related is a global leader in real estate and management, with approximately $50 billion worth of real estate assets. Allianz is a financial services company based in Europe, which focuses on insurance and asset management. As of 3Q21, Allianz has approximately EUR2.550 billion assets under management. The Arizona State Retirement System is a state agency that administers a pensions plan, health insurance plans and other qualified benefits to over 500,000 public servants.

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 Mortgage Trust has an ESG Relevance Score of '4' [+] for Waste & Hazardous Materials Management; Ecological Impacts due to the collateral's sustainable building practices including Green building certificate credentials, which has a positive impact on the credit profile, and is relevant to the ratings in conjunction with other factors.

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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