Fitch Ratings has affirmed seven classes of NYT 2019-NYT Mortgage Trust Commercial Mortgage Pass-Through Certificates.
The Rating Outlooks remain Stable.
RATING ACTIONS
Entity / Debt
Rating
Prior
NYT 2019-NYT
A 62954PAA8
LT
AAAsf
Affirmed
AAAsf
B 62954PAG5
LT
AA-sf
Affirmed
AA-sf
C 62954PAJ9
LT
A-sf
Affirmed
A-sf
D 62954PAL4
LT
BBB-sf
Affirmed
BBB-sf
E 62954PAN0
LT
BB-sf
Affirmed
BB-sf
F 62954PAQ3
LT
BB-sf
Affirmed
BB-sf
X-EXT 62954PAE0
LT
BBB-sf
Affirmed
BBB-sf
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VIEW ADDITIONAL RATING DETAILS
KEY RATING DRIVERS
Stable Performance: The affirmations and Stable Outlooks reflect the performance of the property, high asset quality and experienced sponsorship. Occupancy for the collateral has improved to 98.5% as of the
Largest tenant,
Collateral Quality: The collateral represents 738,385 sf, comprised of 709,678 sf of office, 23,044 sf of ground floor retail, and 5,663 sf of storage/other space, of the 1.3 million sf
Accessible Location: The subject occupies the entire block along
Institutional Sponsorship: The sponsors of the loan are owned by affiliates of
Loan Structure: The mortgage is
High Aggregate Leverage: The
Full-Term, Interest-Only Loan: The loan is IO for the entire seven-year, fully extended loan term.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
A downgrade to classes A and B is not considered likely due to the position in the capital structure, but may occur should interest shortfalls occur. A downgrade to classes C and D is possible if there is a material and sustained decline in the property's occupancy or cash flow. Classes E and F may be downgraded with material declines in property performance and valuation.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Upgrades to the investment-grade classes are possible should performance of the underlying property improve significantly. The lower tranches are less likely to be upgraded, even with improved performance, given the single-property exposure and concentration risk. Classes would not be upgraded beyond 'Asf' if there is any likelihood of interest shortfalls. Defeasance and paydown would not play a role in contemplated an upgrade, given the single-borrower and non-amortizing nature of the securitized loan.
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
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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