KBRA Assigns Preliminary Ratings to Progress Residential 2024-SFR5
2024年7月23日 - 4:08AM
ビジネスワイヤ(英語)
KBRA assigns preliminary ratings to seven classes of Progress
Residential 2024-SFR5 (Progress 2024-SFR5) single family rental
pass-through certificates.
Progress 2024-SFR5 is a single-borrower, single-family rental
(SFR) securitization that will be collateralized by a $617.6
million loan secured by first priority mortgages on 1,769
income-producing single-family homes. The fixed-rate loan requires
interest payments only over its five-year term. The subject
transaction will be the 30th KBRA-rated securitization issued by
Progress Residential.
The underlying single-family rental properties are located in or
near 21 Core Based Statistical Areas (CBSAs) across 10 states. The
top-three CBSAs represent 35.4% of the portfolio and include Miami
(15.1%), Atlanta (11.3%), and Nashville (9.1%). The aggregate BPO
value of the underlying homes is $718.1 million, yielding an LTV of
86.0%. KBRA adjusted the BPOs, which yielded an aggregate value of
$682.2 million, which represents a 5.0% haircut to the nominal BPO
value. The resulting LTV based on KBRA’s adjusted BPO value was
90.5%.
KBRA uses a hybrid analysis to evaluate SFR transactions, which
incorporates elements of both KBRA’s CMBS and RMBS methodologies,
as the underlying real estate contains commercial and residential
characteristics. As the properties generate a cash flow stream from
tenant rental payments, elements of CMBS methodologies are used to
determine the loan’s probability of default (PD). To determine loss
given default (LGD), KBRA assumes the underlying properties would
be liquidated in the residential property market. In determining
LGD, KBRA subjects the real estate properties to home price stress
scenarios using elements of RMBS methodologies. This hybrid
analysis is described in more in KBRA’s U.S. Single-Family Rental
Securitization Methodology.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- CMBS/RMBS: U.S. Single-Family Rental Securitization
Methodology
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1005138
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Analytical Contacts
Fred Perreten, Managing Director (Lead Analyst) +1 646-731-2454
fred.perreten@kbra.com
Akshay Maheshwari, Managing Director +1 646-731-2394
akshay.maheshwari@kbra.com
Lindsey Kephart, Senior Analyst +1 646-731-3369
lindsey.kephart@kbra.com
Nitin Bhasin, Senior Managing Director, Global Head of CMBS
(Rating Committee Chair) +1 646-731-2334 nitin.bhasin@kbra.com
Business Development Contact
Daniel Stallone, Managing Director +1 646-731-1308
daniel.stallone@kbra.com