Class A at
Class B at AA (high) (sf)
Class X at AA (sf)
Class C at AA (low) (sf)
Class D at A (low) (sf)
Class E at BBB (high) (sf)
All trends are Stable.
Class X is an interest-only (IO) class whose balance is notional.
The COMM 2020-SBX single-asset/single-borrower transaction is collateralized by the borrower's fee-simple interest in the Starbucks Center, a 1,434,337-square-foot (sf) Class A LEED Gold office building with retail, storage, and parking components, and
DBRS Morningstar's Debt Service Coverage Ratio of 3.95 times, the collateral's weighted-average remaining lease term of 16.4 years, and the loan's low interest rate suggest a low term default risk profile. Starbucks' lease expires in
The ARD structure of the loan, which requires that all NCF after debt service be applied to principal during a three-year tail, coupled with Starbucks' lease term relative to the ARD and stated maturity, reduces maturity default risk. Additionally, the ARD structure provides the sponsor with the option to sell, refinance, or keep the subject loan in place after Starbucks' rent step in
The borrower sponsor for the transaction,
The ongoing Coronavirus Disease (COVID-19) pandemic continues to pose challenges and risks to virtually all major commercial real estate property types. Per the site inspection, Starbucks employees are currently scheduled to return to the office in
The collateral is located in
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.
Class X is an 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.
For supporting data and more information on this transaction, please log into www.viewpoint.dbrsmorningstar.com. DBRS Morningstar provides analysis and in-depth commentary in the DBRS Viewpoint platform.
Notes:
All figures are in
With regard to due diligence services, DBRS Morningstar was provided with the Form ABS Due Diligence-15E (Form-15E), which contains a description of the information that a third party reviewed in conducting the due diligence services and a summary of the findings and conclusions. While due diligence services outlined in Form-15E do not constitute part of DBRS Morningstar's methodology, DBRS Morningstar used the data file outlined in the independent accountant's report in its analysis to determine the ratings referenced herein.
The principal methodology is the North American Single-Asset/Single-Borrower Ratings Methodology (
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 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.
The full report providing additional analytical detail is available by clicking on the link under Related Documents below or by contacting us at info@dbrsmorningstar.com.
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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Ratings
Date Issued Debt Rated Action Rating Trend Attributes
i
US = Lead Analyst based in USA
CA = Lead Analyst based in
EU = Lead Analyst based in EU
E = EU endorsed
U =
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-participating
15-Dec-20 Mortgage-Backed Certificates, Series 2020-SBX, Class A Provis.-NewAAA (sf) Stb US
15-Dec-20 Mortgage-Backed Certificates, Series 2020-SBX, Class B Provis.-New AA (high) (sf) Stb US
15-Dec-20 Mortgage-Backed Certificates, Series 2020-SBX, Class X Provis.-New AA (sf) Stb US
15-Dec-20 Mortgage-Backed Certificates, Series 2020-SBX, Class C Provis.-New AA (low) (sf) Stb US
15-Dec-20 Mortgage-Backed Certificates, Series 2020-SBX, Class D Provis.-New A (low) (sf) Stb US
15-Dec-20 Mortgage-Backed Certificates, Series 2020-SBX, Class E Provis.-New BBB (high) (sf) Stb US
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