DBRS Limited (DBRS Morningstar) confirmed its ratings of the Commercial Mortgage Pass-Through Certificates, Series 2016-C36 issued by Wells Fargo Commercial Mortgage Trust 2016-C36 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 X-A at AAA (sf)

Class X-B at AA (high) (sf)

Class B at AA (sf)

Class C at A (sf)

Class X-D at BBB (high) (sf)

Class D at BBB (sf)

Class E-1 at BBB (low) (sf)

Class E-2 at BB (high) (sf)

Class E at BB (high) (sf)

Class F-1 at BB (sf)

Class F-2 at BB (low) (sf)

Class F at BB (low) (sf)

Class EF at BB (low) (sf)

Class G-1 at B (sf)

Class G-2 at B (low) (sf)

Class G at B (low) (sf)

Class EFG at B (low) (sf)

Classes F-2, EF, F, G-1, G-2, G, and EFG were removed from Under Review with Negative Implications, where they were placed on August 6, 2020. With this review, the trends for those classes are Negative. In addition, DBRS Morningstar changed the trend for Class F-1 to Negative from Stable; all other trends remain Stable. DBRS Morningstar assigned the Interest in Arrears designation to Classes G-2, G, and EFG.

The Negative trends reflect the continued performance challenges for the underlying collateral, much of which has been driven by the impact of the Coronavirus Disease (COVID-19) global pandemic. In addition to the seven loans representing 27.5% of the pool in special servicing as of the November 2020 remittance, DBRS Morningstar notes that the pool has a high concentration of retail properties, representing 30.6% of the pool. Three of the four largest specially serviced loans are backed by regional mall properties, collectively representing 17.9% of the pool; all have shown performance declines since issuance that were in place prior to the onset of the coronavirus pandemic that are expected to be exacerbated over the near term. In general, retail properties have been severely affected by the initial effects of the coronavirus pandemic and, as such, the high concentration of loans backed by retail property types suggests increased risks for the pool since issuance, particularly for the lower rating categories.

The seven loans in special servicing are Gurnee Mills (Prospectus ID#1; 9.0% of the pool), Easton Town Center (Prospectus ID#5; 5.5% of the pool), Conrad Indianapolis (Prospectus ID#6; 3.6% of the pool), Mall at Turtle Creek (Prospectus ID#7; 3.4% of the pool), Home2 Suites - Long Island City (Prospectus ID#8; 2.9% of the pool), DoubleTree Dallas Near the Galleria (Prospectus ID#14; 2.2% of the pool), and Holiday Inn Express & Suites Cooperstown (Prospectus ID#25; 0.9% of the pool).

The largest loan in special servicing, Gurnee Mills, is secured by a single-level enclosed regional mall totalling 1.9 million square feet (sf), of which 1.7 million sf is part of the collateral. Simon Property Group (Simon) owns and operates the collateral portion of the property. At issuance, the largest tenants were Sears, Bass Pro Shops, and Macy's. The Sears was closed in 2018 and the sponsor has yet to back-fill the space. The loan transferred to the special servicer in June 2020 as a result of monetary default related to the effects of the coronavirus pandemic. The loan was last paid in April 2020, according to the November 2020 remittance. Simon has submitted a coronavirus-related relief request, which is still being evaluated by the special servicer.

Performance for the subject property was on the decline prior to the coronavirus pandemic, with cash flow trending downward for the past three consecutive years. The 2019 year-end net cash flow (NCF) decreased 11.1% compared with year-end 2018 and declined 17.5% compared with the issuer's NCF. DBRS Morningstar notes the increased risks for the loan from issuance given the extended delinquency, difficulty in back-filling the former Sears space, and the property's exposure to struggling retailers including Macy's. Given these factors, as well as the decline in performance prior to the pandemic, DBRS Morningstar applied a stressed probability of default (PoD) for this loan in the analysis for this review, increasing the expected loss.

All of the loans in special servicing are secured by retail and hospitality property types and all transferred to the special servicer after the beginning of the coronavirus pandemic. Two of the seven specially serviced loans, Conrad Indianapolis and DoubleTree Dallas Near the Galleria, have reported updated values since the transfer. In both cases, the June 2020 values showed declines from issuance, but still implied value just above the trust and/or pari passu A note balances. In instances where the specially serviced loans were exhibiting signs of increased credit risk since issuance, a stressed PoD was applied to increase the expected loss in the analysis for this review.

As of the November 2020 remittance, all 73 of the original loans remain in the pool with a collateral reduction of 11.1% since issuance. Three loans, representing 1.44% of the pool, are fully defeased. Additionally, there are 19 loans, representing 19.7% of the current trust balance, being monitored on the servicer's watchlist. These loans are being monitored for a variety of reasons, including low debt service coverage ratio (DSCR) and occupancy issues; however, the primary reason for the increase of loans on the servicer's watchlist is for hospitality and retail properties with a low DSCR stemming from disruptions related to coronavirus. Where merited, these and any other loans in the pool showing signs of increased stress from issuance were analyzed with an elevated PoD and expected loss.

ESG CONSIDERATIONS

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Classes X-A, X-B, and X-D 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 the following loans in the transaction:

Prospectus ID#1 - Gurnee Mills (9.0% of the pool)

Prospectus ID#2 - Mall at Turtle Creek (3.4% of the pool)

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 6, 2020), 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.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.

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. Please note a sensitivity analysis is not performed for CMBS bonds rated CCC or lower. The DBRS Morningstar long-term rating scale definition indicates that ratings of CCC or lower are assigned when the bond is highly likely to default or default is imminent, thereby prevailing over a sensitivity analysis.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar's outlooks and ratings are monitored.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

DBRS Limited

DBRS Tower, 181 University Avenue, Suite 700

Toronto, ON M5H 3M7 Canada

Tel. +1 416 593-5577

Ratings

Date Issued	Debt Rated	Action	Rating	Trend	Issued

i

US = USA Issued, NRSRO

CA = Canada Issued, NRSRO

EU = EU Issued, NRSRO

E = EU endorsed

Unsolicited Participating With Access

Unsolicited Participating Without Access

Unsolicited Non-Participating

02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class A-1	Confirmed	AAA (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class A-2	Confirmed	AAA (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class A-3	Confirmed	AAA (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class A-4	Confirmed	AAA (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class A-S	Confirmed	AAA (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class A-SB	Confirmed	AAA (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class X-A	Confirmed	AAA (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class X-B	Confirmed	AA (high) (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class B	Confirmed	AA (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class C	Confirmed	A (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class X-D	Confirmed	BBB (high) (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class D	Confirmed	BBB (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class E-1	Confirmed	BBB (low) (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class E	Confirmed	BB (high) (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class E-2	Confirmed	BB (high) (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class F-1	Trend Change	BB (sf)	Stb	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class EF	Trend Change	BB (low) (sf)	Neg	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class F	Trend Change	BB (low) (sf)	Neg	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class F-2	Trend Change	BB (low) (sf)	Neg	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class G-1	Trend Change	B (sf)	Neg	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class EFG	Int. in Arrears	B (low) (sf)	Neg	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class EFG	Trend Change	B (low) (sf)	Neg	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class G	Trend Change	B (low) (sf)	Neg	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class G	Int. in Arrears	B (low) (sf)	Neg	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class G-2	Trend Change	B (low) (sf)	Neg	CA
02-Dec-20	Commercial Mortgage Pass-Through Certificates, Series 2016-C36, Class G-2	Int. in Arrears	B (low) (sf)	Neg	CA

(C) 2020 Electronic News Publishing, source ENP Newswire