DBRS Morningstar Assigns Provisional Ratings to AMSR 2022-SFR2 Trust.
ENPNewswire-July 13, 2022--DBRS Morningstar Assigns Provisional Ratings to AMSR 2022-SFR2 Trust
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Release date- 12072022 - DBRS, Inc. (DBRS Morningstar) assigned the following provisional ratings to the Single-Family Rental Pass-Through Certificates to be issued by AMSR 2022-SFR2 Trust (AMSR 2022-SFR2).
$189.4 million Class A at AAA (sf)
$61.6 million Class B at AA (low) (sf)
$19.4 million Class C at BBB (sf)
$46.4 million Class D at BBB (low) (sf)
$22.7 million Class E at BB (low) (sf)
$21.5 million Class F at B (low) (sf)
The AAA (sf) rating on the Class A Certificate reflects 51.8% of credit enhancement provided by subordinated notes in the pool. The AA (low) (sf), BBB (sf), BBB (low) (sf), BB (low) (sf), and B (low) (sf) ratings reflect 36.1%, 31.2%, 19.4%, 13.6%, and 8.1% credit enhancement, respectively.
Other than the classes specified above, DBRS Morningstar does not rate any other classes in this transaction.
The AMSR 2022-SFR2 certificates are supported by the income streams and values from 1,638 rental properties. The properties are distributed across 15 states and 39 metropolitan statistical areas (MSAs) in the United States. DBRS Morningstar maps an MSA based on the ZIP code provided in the data tape, which may result in different MSA stratifications than those provided in offering documents. As measured by broker price opinion value, 52.6% of the portfolio is concentrated in three states: North Carolina (20.0%), Florida (19.7%), and Georgia (12.9%). The average value is $289,076. The average age of the properties is roughly 32 years. The majority of the properties have three or more bedrooms. The certificates represent a beneficial ownership in an approximately five-year, fixed-rate, interest-only loan with an initial aggregate principal balance of approximately $393.0 million.
DBRS Morningstar assigned the provisional ratings to each class of certificates by performing a quantitative and qualitative collateral, structural, and legal analysis. This analysis uses DBRS Morningstar's single-family rental subordination model and is based on DBRS Morningstar's published criteria. DBRS Morningstar developed property-level stresses for the analysis of single-family rental assets. DBRS Morningstar assigned the provisional ratings to each class based on the level of stresses each class can withstand and whether such stresses are commensurate with the applicable rating level. DBRS...
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