KBRA assigns preliminary ratings to CoreVest American Finance 2021-2
NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) assigns ratings to nine classes of certificates issued as part of the CoreVest American Finance 2021-2 (CAF 2021-2) securitization. This is the sixteenth such transaction issued by CoreVest American Finance.
CAF 2021-2 is a multi-borrower securitization of 305.8 million dollars backed by 83 traditional single-family (SFR) and multi-family rental loans. The loans are secured by mortgages on 3,827 rental units in 2,394 single-family, 2-4-family and multi-family properties. The pool in question comprises 43 multi-family properties (909 units), which represent 16.9% of the total pool balance.
Overall, the underlying properties are located in or near 61 Central Statistical Areas (CBSAs) in 26 states. The CBSA’s top three exposures account for 28.4% of the pool balance and consist of Houston, Texas (14.2%), Atlanta, Georgia (7.1%) and Philadelphia, Pennsylvania (7.1%) . The loans have principal balances ranging from $ 0.5 million (0.2%) to $ 49.8 million (16.3%) for the largest loan in the pool. The top five loans represent 32.9% of the initial pool balance, while the top 10 loans represent 46.0% of the pool.
In order to facilitate analysis, KBRA has divided the underlying properties into two distinct subgroups by property type. Subgroup 1 (1 to 4 units) is mainly composed of single-family rental homes and properties of 2 to 4 units (2,350 properties, 83.0%). Subgroup 2 (Multifamily) includes properties consisting of five or more units (43 properties, 909 units, 16.9%). KBRA used its US single-family rental securitization methodology to assess subgroup 1, while subgroup 2 was analyzed in a manner generally consistent with the KBRA approach described in our CMBS property assessment methodology. in the USA and the US CMBS multi-borrower rating methodology. The results of these analyzes were then combined, and the pool-level concentration and qualitative adjustments were then applied to determine the KBRA credit enhancement levels for the pool in question. The results of this analysis were then compared to the capital structure proposed by the issuer for assigning ratings.
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Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.