KBRA assigns preliminary scores to Progress Residential 2021-SFR6

NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Score Company (KBRA) assigns preliminary scores to eight courses of Progress Residential 2021-SFR6 (Progress 2021-SFR6) single-family rental switch certificates.

Progress 2021-SFR6 is a single-borrower single-family rental securitization (SFR) that will probably be secured by a $ 556.9 million mortgage secured by a primary mortgage on 2,116 income-producing single-family properties. The mounted charge mortgage will solely require curiosity funds and can have a time period of 5 years. The transaction in query would be the sixteenth KBRA-rated securitization issued by Progress Residential. The underlying single-family rental properties are situated in or close to 16 Central Statistical Areas (CBSAs) in 9 states. The highest three CBSAs signify 44.1% of the portfolio and embrace Phoenix (17.1%), Nashville (16.2%) and Atlanta (10.8%). The mixture BPO worth of the underlying properties is $ 586.2 million, which provides an LTV of 95.0%. KBRA adjusted the BPOs, leading to an total worth of $ 556.9 million. This represents a reduction of 5.0% from the face worth of the BPO. The ensuing LTV based mostly on the adjusted BPO worth of KBRA was 100.0%.

Progress 2021-SFR6 features a voluntary substitution perform which permits the issuer to substitute as much as 5.0% of the underlying dwellings, by variety of properties on the deadline, topic to fulfilling sure circumstances within the mortgage settlement. The sponsor may also have the best to launch properties with out prepaying the mortgage stability or paying a upkeep of efficiency or further launch premium to the belief. Train of the Extra Collateral Launch (ECR) performance is topic to sure phrases and circumstances together with, however not restricted to: acquiring up to date BPO for 100% of collateral properties; the Mortgage to Worth (LTV) ratio (excluding part H of the mortgage) based mostly on discounted BPOs can not exceed 85.0% for the primary RCT and 83.0% for any subsequent RCT; the LTV of every part of the mortgage can not exceed the LTV on the date of the securitization closing; and a few efficiency assessments should be glad. Use of the characteristic can be topic to affirmation from KBRA’s Score Company (RAC).

KBRA used its US single-family rental securitization methodology to evaluate the transaction. The methodology depends on components of KBRA’s industrial and residential mortgage-backed securities standards attributable to the truth that the collateral underlying an SFR transaction has each industrial and residential traits. Because the properties generate money movement from tenant hire funds, CMBS methodologies have been used to find out the likelihood of mortgage default. To find out loss given default, KBRA assumed that the underlying secured properties can be liquidated within the residential actual property market.

Click on right here to view the report. To entry the assessments and related paperwork, click on right here.

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Disclosures

Additional data on key credit score issues, sensitivity analyzes that study the elements that will have an effect on these credit score scores and the way they may result in an enchancment or a downgrade, and ESG elements (when they’re a key issue within the change in credit standing or score outlook) could be discovered within the full evaluation report referenced above.

An outline of all considerably vital sources that have been used to arrange the credit standing and details about the strategy (s) (together with vital fashions and sensitivity analyzes of related key score assumptions, if any) used to find out The credit standing is obtainable within the Data Disclosure Kind (s) situated right here.

Right here you can find details about the that means of every score class.

Additional data referring to this score measure is obtainable within the data disclosure kind (s) talked about above. Further data relating to KBRA’s insurance policies, methodologies, score scales and disclosures can be found at www.kbra.com.

About KBRA

Kroll Bond Score Company, LLC (KBRA) is a full-service credit standing company registered with the US Securities and Change Fee as NRSRO. Kroll Bond Score Company Europe Restricted is registered as a credit standing company with the European Securities and Markets Authority. Kroll Bond Score Company UK Restricted is registered as a credit standing company with the UK Monetary Conduct Authority beneath the short-term registration regime. As well as, KBRA is appointed because the designated score company by the Ontario Securities Fee for issuers of asset-backed securities to file a simplified prospectus or shelf prospectus. KBRA can be acknowledged by the Nationwide Affiliation of Insurance coverage Commissioners as a credit standing supplier.


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