Morningstar DBRS Confirms Credit Ratings on BAMLL Commercial Mortgage Securities Trust 2024-NASH

DBRS Limited (Morningstar DBRS) confirmed its credit ratings on the following classes of Commercial Mortgage Pass-Through Certificates, Series 2024-NASH (the Certificates) issued by BAMLL Commercial Mortgage Securities Trust 2024-NASH (the Trust):

--Class A at AAA (sf)
--Class X-CP at AAA (sf)
--Class X-NCP at AAA (sf)
--Class B at AA (low) (sf)
--Class C at A (low) (sf)
--Class D at BBB (low) (sf)
--Class E at BB (low) (sf)

All trends are Stable.

The confirmation of the credit ratings reflects the limited seasoning of this transaction, which closed in May 2024. The transaction is secured by the borrower's fee-simple, leasehold, and condominium interests as well as the Operating Lessee's leasehold interests in the Renaissance Nashville Hotel, encompassing 674 keys. The hotel is within downtown Nashville, adjacent to Broadway, and within walking distance of Music City Hall, the main convention center of Nashville. The property has many amenities, including two food and beverage outlets, retail shops, a fitness center, an indoor pool, and a complementary lounge. The sponsor, Ashford Hospitality Limited Partnership, has over 50 years' experience in the hotel industry with a successful track record of navigating capital markets' economic downturns.

Whole loan proceeds of $267.2 million were used to retire $241.7 million of an existing loan debt and return $16.9 million of equity to the sponsor. The loan is a two-year floating rate interest-only mortgage loan, with three one-year extension options. The floating rate is based on the one-month Secured Overnight Financing Rate (SOFR) plus the initial weighted-average component spread of 3.98%. At closing, the borrower purchased an interest rate cap agreement, with a one-month Term SOFR strike price of 5.00%.

According to the most recent servicer provided financial reporting for the trailing 12 (T-12) month period ended December 31, 2024, the property generated a net cash flow (NCF) of $30.8 million, resulting in a debt service coverage ratio (DSCR) of 1.27 times (x), in line with Morningstar DBRS' figure of $27.8 million (DSCR of 1.14x) derived at closing. Per the February 2024 STR report, the property reported a T-12 December 31, 2024, occupancy rate, average daily rate (ADR), and revenue per available room (RevPAR) metrics of 77.5%, $287.87, and $223.08, respectively. In comparison at issuance, these reported figures were 82.5%, $279.97, and $230.84, respectively. Overall, Morningstar DBRS continues to maintain a favorable view on the collateral given the property location, capital improvements completed by the sponsor in the years preceding loan closing, and the experienced sponsorship.

For this review, Morningstar DBRS maintained a collateral valuation of $336.8 million derived at issuance based on a capitalization rate of 8.25% and the Morningstar DBRS NCF of $27.8 million, which represents a -17.2% variance from the issuance appraised value of $407.0 million. The Morningstar DBRS loan-to-value ratio (LTV) is 79.3% compared with the LTV of 65.7% based on the appraised value at issuance. In addition, Morningstar DBRS maintained positive qualitative adjustments totaling 5.0% to reflect the recent capital expenditure, property location, and strong market fundamentals.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS  
There were no Environmental, Social, or Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024): https://dbrs.morningstar.com/research/437781.

Classes X-CP and X-NCP are interest-only (IO) certificates that reference 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 credit ratings are subject to surveillance, which could result in credit ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by Morningstar DBRS.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is North American CMBS Surveillance Methodology (February 28, 2025): https://dbrs.morningstar.com/research/448963

Other methodologies referenced in this transaction are listed at the end of this press release.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info-DBRS@morningstar.com.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.

DBRS Limited
DBRS Tower, 181 MORN Intrinsicity Avenue, Suite 700
Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

-- North American Single-Asset/Single-Borrower Ratings Methodology (February 28, 2025): https://dbrs.morningstar.com/research/448962
-- Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024): https://dbrs.morningstar.com/research/439702
-- Legal Criteria for U.S. Structured Finance (December 3, 2024):
https://dbrs.morningstar.com/research/444064
-- Interest Rate Stresses for U.S. Structured Finance Transactions (March 27, 2025): https://dbrs.morningstar.com/research/450750
-- North American Commercial Mortgage Servicer Rankings (August 23, 2024): https://dbrs.morningstar.com/research/438283

A description of how Morningstar DBRS analyzes structured finance transactions and how the methodologies are collectively applied can be found at (July 17, 2023): https://dbrs.morningstar.com/research/417279.

For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.