DBRS Morningstar Confirms All Classes of Citigroup Commercial Mortgage Trust 2020-555

DBRS, Inc. (DBRS Morningstar) confirmed the ratings on the Commercial Mortgage Pass-Through Certificates, Series 2020-555 issued by Citigroup Commercial Mortgage Trust 2020-555 as follows:

-- Class A at AAA (sf)
-- Class B at AAA (sf)
-- Class C at AA (high) (sf)
-- Class X at AA (sf)
-- Class D at AA (low) (sf)
-- Class E at BBB (low) (sf)
-- Class F at BB (low) (sf)
-- Class G at B (sf)

All trends are Stable.

The rating confirmations reflect continued stable performance of the collateral, which remains in line with DBRS Morningstar’s expectations.

The fixed-rate, full-term interest-only (IO) $400.0 million loan is secured by a recently built Class A luxury high-rise apartment in the Midtown West submarket of Manhattan, New York. The property features a rooftop terrace, two fitness centers, a yoga studio, an arcade and bowling alley, a dog grooming center, and indoor and outdoor pools. Units feature high-end finishes, including oversized windows, quartz countertops, stainless-steel appliances, in-unit washers and dryers, and large bathrooms. The building sits just north of the Hudson Yards development, with good proximity to the Port Authority bus terminal and multiple subway lines. Times Square is less than a half-mile to the east. Despite increased development in the immediate area over the past few years, the submarket multifamily vacancy rate remains low at 5% as of Q4 2021, according to Reis. There was no new inventory added to the submarket in 2021. As of December 2021, the subject's market-rent units were 95.8% occupied, and the rent-stabilized units were 98.7% occupied.

The deal closed in March 2020, so the YE2021 statement marks the first full year of servicer reporting since securitization. Despite the strong occupancy figures noted above, net cash flow (NCF) has declined slightly because of the rent abatement periods granted in 2020 and 2021, which are currently being repaid. DBRS Morningstar determined that the NCF stresses to the property during the last year have been primarily caused by the Coronavirus Disease (COVID-19) pandemic and do not reflect a sustained decline in value. DBRS Morningstar expects base rental income to rebound once the abated rent is repaid.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

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.

DBRS Morningstar provides updated analysis and in-depth commentary in the DBRS Viewpoint platform for this transaction.

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com. The platform includes loan-level 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 the North American CMBS Surveillance Methodology (March 26, 2021), 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.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482/baseline-macroeconomic-scenarios-application-to-credit-ratings.

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.

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

DBRS, Inc.
22 West Washington Street
Chicago, IL 60602 USA
Tel. +1 312 332-3429