Morningstar DBRS Downgrades and Discontinues Credit Ratings on Six Classes Across Four Transactions

DBRS Limited (Morningstar DBRS) downgraded the credit ratings on six classes across four transactions as follows:

LSTAR Commercial Mortgage Trust 2016-4 (LSTAR 2016-4)
-- Class G to D (sf) from C (sf)

CORE 2019-CORE Mortgage Trust (CORE 2019-CORE)
-- Class F to D (sf) from B (sf)

MSC Mortgage Securities Trust, 2012-C4 (MSC 2012-C4)
-- Class E to D (sf) from C (sf)
-- Class F to D (sf) from C (sf)
-- Class G to D (sf) from C (sf)

Wells Fargo Commercial Mortgage Trust 2015-NXS2 (WFCM 2015-NXS2)
-- Class F to D (sf) from C (sf)

In addition, Morningstar DBRS discontinued the credit ratings on Classes B, C, D, E, and X-NCP in the CORE 2019-CORE transaction and Class D in the MSC 2012-C4 transaction as they were repaid with the April 2025 remittance. Following the credit rating downgrades, Morningstar DBRS will subsequently discontinue and withdraw its credit ratings on all aforementioned classes.

The credit ratings downgrades were due to a loss to the respective trusts that was reflected with the April 2025 remittances. The LSTAR 2016-4 transaction incurred a loss of $35.7 million, wiping out the unrated Class H and eroding $9.3 million of Class G. The loss was tied to the liquidation of 995 Market Street (Prospectus ID#4). The loan-level loss was in line with Morningstar DBRS' expectation of $38.6 million at the last review.

The CORE 2019-CORE transaction incurred a loss of $439,000, eroding into Class F. The loss was tied to the sale of the last two remaining properties in the portfolio, Station Square and One Pierrepont Plaza. Per the April 2025 remittance, administrative fees totaling $1.9 million were recorded following the liquidation, reducing the available proceeds to $147.6 million, with the aforementioned incurred loss applied to the junior-most Class F. In addition, Morningstar DBRS discontinued the credit ratings on Classes B, C, D, E, and X-NCP as they were repaid with the April 2025 remittance. This concludes Morningstar DBRS' surveillance of this transaction.

The MSC 2012-C4 transaction incurred a loss of $90.8 million, wiping out Classes F, G, the unrated Class H, and eroding into Class E. The loss was tied to the liquidation of The Shoppes at Buckland Hills (Prospectus ID#1). The loan-level loss was greater than Morningstar DBRS' expectation of $59.1 million at the last review. In addition, Morningstar DBRS discontinued the credit rating on Class D at it was repaid with the April 2025 remittance. This concludes Morningstar DBRS' surveillance of this transaction.

The WFCM 2015-NXS2 transaction incurred a loss of $5.0 million, wiping out the remainder of the unrated Class G and eroding $4.1 million of Class F. The loss was tied to non-recoverable advances for the 70 Broad Street loan (Prospectus ID#18, 3.5% of the pool). At the last review, Morningstar DBRS analyzed this loan with a liquidation scenario, with implied losses totaling $11.2 million (79% loss severity).

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/Governance factor(s) 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 (May 16, 2025): https://dbrs.morningstar.com/research/454196.

Classes that are interest-only (IO) certificates 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

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 600
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 CMBS Multi-Borrower Rating Methodology (April 09, 2025)/North American CMBS Insight Model v 1.3.0.0: https://dbrs.morningstar.com/research/451739.

-- 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 03, 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.