DBRS Morningstar Confirms Ratings on Wells Fargo Commercial Mortgage Trust 2019-C49, Maintains Negative Trends on Three Classes.
ENPNewswire-January 13, 2022--DBRS Morningstar Confirms Ratings on Wells Fargo Commercial Mortgage Trust 2019-C49, Maintains Negative Trends on Three Classes
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Release date- 12012022 - DBRS Limited (DBRS Morningstar) confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2019-C49 issued by Wells Fargo Commercial Mortgage Trust 2019-C49 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-5 at AAA (sf)
Class A-SB at AAA (sf)
Class A-S at AAA (sf)
Class X-A at AAA (sf)
Class B at AA (sf)
Class X-B at A (high) (sf)
Class C at A (sf)
Class X-D at A (low) (sf)
Class D at BBB (high) (sf)
Class E-RR at BBB (low) (sf)
Class F-RR at BB (high) (sf)
Class G-RR at BB (sf)
Class H-RR at B (high) (sf)
Class J-RR at B (low) (sf)
Classes G-RR, H-RR, and J-RR continue to carry Negative trends. All other trends are Stable.
The rating confirmations reflect the overall stable performance of the transaction, while the Negative trends largely reflect DBRS Morningstar's outlook for some of the loans in special servicing, as further discussed below for the largest of these loans. In general, the loans contributing to the increased likelihood of loss to the trust were exhibiting performance declines prior to the onset of the Coronavirus Disease (COVID-19) pandemic, and those increased risks are now exacerbated amid the effects of the pandemic.
According to the December 2021 remittance, all of the original 64 loans remain in the pool with an aggregate principal balance of $765.7 million, representing a 1.1% collateral reduction since issuance as a result of scheduled amortization. One loan, representing 0.4% of the pool, has fully defeased. The pool is most heavily concentrated in retail, lodging, and office properties, representing 29.9%, 21.5%, and 14.9% of the current pool balance, respectively. There are currently 13 loans, representing 24.2% of the pool, on the servicer's watchlist for a variety of reasons, but primarily stemming from coronavirus-driven cash flow declines; eight of the loans, representing 16.5% of the pool, are secured by lodging and retail properties, which have been the most acutely affected.
There are also four loans, representing 4.3% of the pool, in special servicing. One of these loans, 599 Johnson Ave (Prospectus ID#45, 0.8% of the pool), is currently negotiating terms of a reinstatement. The remaining...
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