DBRS Morningstar Affirms All Natixis Commercial Mortgage Securities Trust 2018-ALXA Ratings

DBRS, Inc. (DBRS Morningstar) has confirmed the following ratings on Commercial Mortgage Transfer Certificates, Series 2018-ALXA issued by Natixis Commercial Mortgage-Backed Securities Trust 2018-ALXA.

Class A to AAA (fs)

Class B to AA (sf)

Class C to A (high) (sf)

Class D to BBB (high) (sf)

Class E to BB (high) (sf)

All trends are stable. The rating confirmations reflect the overall stable performance of this transaction, which is in line with DBRS Morningstar expectations.

The loan is secured by Center 425 Bellevue, a 356,909 square foot (sf), Class A, LEED Silver-certified downtown office building Bellevue, Washingtonabout 10 miles east of Seattle. The condominium interest includes 98.3% of the leasable area of ​​the 16-story structure in addition to an eight-level underground parking garage. The property is close to the Bellevue Transit Center, which is undergoing an extension which is expected to be completed in 2023. The property is primarily occupied by the investment grade tenant Amazon.com, Inc. (Amazon) under a 16-year triple net lease that extends to December 31, 2032.

The loan is sponsored by RFR Holdings LLC and Capital Tristar, whose principals act as guarantors of the operation. the $124.5 million the trust loan is part of a split loan structure that consists of four notes totaling $208.5 million, Notes A-1 and B being the assets of the trust in question. Part of the pari passu portion (21.1%; representing 5.3% of the pool) is held in CSAIL 2017-CX10, whose DBRS Morningstar ratings were reviewed and confirmed in September 2021. The additional debt consists of a $57.6 million mezzanine loan, which coincides with the mortgage in trust. The interest-only (IO) fixed-rate mortgage has an expected repayment date of 2027 and a final loan maturity of 2033.

According to December 2021 rent roll, the property is 98.2% occupied by Amazon, which pays a base rent of $38.45/sqft, subject to annual rent increases of 2.25%. According to the lease agreement, Amazon has three five-year extension options and no termination options. Although it can reduce its space in whole-floor increments, Amazon must keep at least 175,000 square feet as collateral. Its lease is also guaranteed by Amazon, subject to a ceiling of $190.0 million during the first five years, which reduces $19.0 million each year thereafter. As of YE2021, the servicer reported net cash flow (NCF) of $16.0 million with a debt service coverage ratio (DSCR) of 1.78x(x), an increase over the YE2020 FNC of $15.5 million with a DSCR of 1.72x, and the transmitter NCF of $15.2 million with a DSCR of 1.69x.

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

All ratings are subject to monitoring, which could result in ratings being upgraded, downgraded, revised, confirmed or discontinued by DBRS Morningstar.

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

The DBRS Viewpoint platform provides additional information about this transaction and the underlying loans, including DBRS Morningstar metrics, commentary, servicing agent reported cash flow, and other performance-related data.

For free access to this content, please register with the DBRS Viewpoint platform at www.viewpoint.dbrsmorningstar.com.

Remarks:

All figures are in WE dollars unless otherwise specified.

The main methodology is the North American CMBS Surveillance Methodology (March 4, 2022), which can be found on dbrsmorningstar.com under Methodologies and Criteria. For a list of 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 all related methodologies listed in a Principal Structured Finance Asset Class Methodology can be used to assess or monitor an individual structured finance or debt security.

DBRS Sovereign Morningstar group publishes reference macroeconomic scenarios for rated sovereigns. DBRS Morningstar’s analysis considered impacts consistent with baseline scenarios as set out in the following report: https://www.dbrsmorningstar.com/research/384482.

The rated entity or its related entities participated in the rating process for this rating metric. 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 relevant appendix for more information on the sensitivity of the assumptions used in the rating process.

For more information about this credit or 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	Attributesi

US = Lead Analyst based in the USA

CA = Lead Analyst based in Canada

EU = Lead Analyst based in EU

UK = Lead Analyst based in UK

E= EU approved

U= UK approved

Unsolicited participation with access

Unsolicited participation without access

Unsolicited Non Participating

25-Apr-22	Commercial Mortgage Pass-Through Certificates, Series 2018-ALXA, Class A	Confirmed	AAA (sf)	Stb	US

25-Apr-22	Commercial Mortgage Pass-Through Certificates, Series 2018-ALXA, Class B	Confirmed	AA (sf)	Stb	US

25-Apr-22	Commercial Mortgage Pass-Through Certificates, Series 2018-ALXA, Class C	Confirmed	A (high) (sf)	Stb	US

25-Apr-22	Commercial Mortgage Pass-Through Certificates, Series 2018-ALXA, Class D	Confirmed	BBB (high) (sf)	Stb	US

25-Apr-22	Commercial Mortgage Pass-Through Certificates, Series 2018-ALXA, Class E	Confirmed	BB (high) (sf)	Stb	US