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KBRA Assigns Preliminary Ratings to CoreVest American Finance 2017-1Kroll Bond Rating Agency (KBRA) is pleased to announce the assignment of preliminary ratings to six classes of certificates issued in the CoreVest American Finance 2017-1 (CAF 2017-1) securitization. This transaction will be the eighth multi-borrower, single-family rental (SFR (News - Alert)) securitization issued in the US to date and the fourth issued by CoreVest American Finance (formerly Colony American Finance). CAF 2017-1 is a $207.2 million multi-borrower SFR securitization that will be collateralized by 87 fixed-rate loans secured by first priority mortgages on 2,904 rental units in 2,327 income-producing single-family, 2-4 family, and multifamily properties. The properties are located in 27 states, with the largest five exposures comprised of Ohio (10.8%), New Jersey (9.2%), and Florida (7.9%), Connecticut (6.7%), and Missouri (6.5%). The loans have principal balances ranging from $0.4 million to $14.4 million for the largest loan in the pool, Rex Residential Ventures A (14.3%), a 192 property (192 units) portfolio. The five largest loans, which also include National Home Rentals (5.8%), SMP Homes LLC Global (4.7%), Big T Properties (4.4%), and Meridian Ocean HAP Ventures (3.1%), represent 24.9% of the initial pool balance, while the ten largest loans represent 39.6%. KBRA used its Single-Family Rental Securitization Methodology to evaluate the transaction. The methodology leverages elements of KBRA's commercial mortgage-backed securities and residential mortgage-backed securities criteria due to the fact that the collateral underlying an SFR transaction has both commercial and residential characteristics. As the properties generate a cash flow stream from tenant rental payments, CMBS methodologies were used to determine the loan's probability of default. To determine loss given default, KBRA assumed the underlying collateral properties would be liquidated in the residential property market. For further details on KBRA's analysis, please see our pre-sale report, entitled CoreVest American Finance 2017-1, which was published today at www.kbra.com. The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
1 Notional balance Representations & Warranties Disclosure All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC (News - Alert) Rule 17g-7, to provide a description of a transaction's representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA's disclosure for this transaction can be found in the report available here. Related Publications: (available at www.kbra.com) CONNECT WITH KBRA
Twitter About Kroll Bond Rating Agency KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP). View source version on businesswire.com: http://www.businesswire.com/news/home/20171023005978/en/ |
