NEW YORK, Nov. 14, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings to five classes of single-family rental pass-through certificates from American Homes 4 Rent 2014-SFR3 (AH4R 2014-SFR3), a single-family rental securitization. The preliminary ratings are based on information known to Morningstar as of Nov. 13, 2014.
PRELIMINARY RATINGS (AS OF NOV. 13, 2014) | ||
Class | Balance | Preliminary Ratings |
Class A | $303,783,000 | AAA |
Class B | $49,965,000 | AA+ |
Class C | $53,961,000 | A+ |
Class D | $35,975,000 | BBB+ |
Class E | $86,316,000 | BBB |
The collateral backing the AH4R 2014-SFR3 transaction consists of approximately 4,521 single-family properties with a total value of $799,430,239. American Homes 4 Rent has acquired all of the properties, which are 100.0 percent rented as of the collateral cutoff date of Oct. 1, 2014, with an average monthly rental payment of approximately $1,422. Properties in Texas, North Carolina, and Indiana constitute the majority of the pool, representing approximately 22.8 percent, 21.3 percent, and 13.7 percent of the assets, respectively. American Homes 4 Rent has acquired mortgages on the properties for the benefit of the securitization trust.
For complete details about the preliminary ratings of this transaction, Morningstar's Presale Analysis Package, including the Presale Report and the Representations, Warranties, and Enforcement Mechanisms, is available under the RMBS tab in the Ratings Reports section at https://ratingagency.morningstar.com. Information subsequently received could result in the assignment of final ratings that differ from the preliminary ratings.
Morningstar's "Single-Family Rental Securitization Ratings Methodology" for new-issue and surveillance ratings of securities backed by pools of single-family rental properties and the "Guide to the Morningstar Single-Family Rental Quantitative Analysis and Subordination Model," which details Morningstar's quantitative model for assessing single-family rental securities, are both available in the Analysis and Considerations section at https://ratingagency.morningstar.com.
About Morningstar Credit Ratings, LLC and Morningstar, Inc.
Morningstar Credit Ratings, LLC is a Nationally Recognized Statistical Rating Organization (NRSRO) that specializes in structured credit research and ratings and offers a wide array of services including new-issue ratings and analysis, operational risk assessments, surveillance services, data, and technology solutions.
Morningstar Credit Ratings, LLC is a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research in North America, Europe, Australia, and Asia.
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Morningstar, Inc. is not an NRSRO, and its credit ratings on corporate issuers are not NRSRO credit ratings.
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