Morningstar Credit Ratings Assigns Preliminary Ratings for American Homes 4
Rent 2014-SFR1 (AH4R 2014-SFR1)
NEW YORK, May 7, 2014
NEW YORK, May 7, 2014 /PRNewswire/ --Morningstar Credit Ratings, LLC today
assigned preliminary ratings to six classes of single-family rental
pass-through certificates from American Homes 4 Rent 2014-SFR1 (AH4R
2014-SFR1), a single-family rental securitization. AH4R 2014-SFR1 is the third
issuance of rated bonds backed by the cash flows and value of single-family
rental properties. The preliminary ratings are based on information known to
Morningstar as of May 7, 2014.
PRELIMINARY RATINGS (AS OF MAY 7, 2014)
Class Balance Preliminary Ratings
Class A $270,396,000 AAA
Class B $37,733,000 AA+
Class C $40,889,000 A+
Class D $38,696,000 BBB+
Class E $62,286,000 BBB
Class F $32,700,000 BB+
The collateral backing the AH4R 2014-SFR1 transaction consists of
approximately 3,871 single-family properties with a total value of
$689,584,218. American Homes 4 Rent has acquired all of the properties, which
are rented, with an average monthly rental payment of approximately
$1,351.Properties in Florida and Texas constitute the majority of the pool,
representing approximately 30.2 percent and 23.7 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, the
Morningstar Presale Report is available via the "RMBS" tab under the "Ratings
Reports" section at https://ratingagency.morningstar.com.
Morningstar's analysis of the securitization included property-level analysis
of the cash flows and underlying value using the Morningstar Single-Family
Rental Subordination Model.Additionally, Morningstar has incorporated the
reviews of key transaction participants, such as the property manager and
servicer, as well as a review of the legal structure and documentation.After
Morningstar publishes the preliminary ratings and presale report, it will
monitor and update its ratings as necessary.
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 "Guide to the Morningstar Single-Family
Rental Quantitative Analysis and Subordination Model" are both available in
the "Analysis and Considerations" section at
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
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.
Morningstar, Inc. offers an extensive line of products and services for
individual investors, financial advisors, asset managers, and retirement plan
providers and sponsors. Morningstar provides data on approximately 456,000
investment offerings, including stocks, mutual funds, and similar vehicles,
along with real-time global market data on more than 12 million equities,
indexes, futures, options, commodities, and precious metals, in addition to
foreign exchange and Treasury markets. Morningstar also offers investment
management services through its registered investment advisor subsidiaries and
had approximately $164 billion in assets under advisement and management as of
March 31, 2014. The company has operations in 27 countries.
Morningstar, Inc. is not an NRSRO and its credit ratings on corporate and
municipal issuers are not NRSRO credit ratings.
©2014 Morningstar, Inc. All Rights Reserved.
Michelle Weiss, +1 267-960-6014 or email@example.com
SOURCE Morningstar, Inc.
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