Kroll Bond Rating Agency Assigns Preliminary Ratings to Silver Bay Realty 2014-1

NEW YORK--()--Kroll Bond Rating Agency, Inc. (KBRA) is pleased to announce the assignment of preliminary ratings to Silver Bay Realty 2014-1 mortgage pass-through certificates. Silver Bay Realty 2014-1 is a single-family rental (SFR) securitization that will be collateralized by a single $312.7 million loan secured by mortgages on 3,089 income-producing single-family homes. The loan is secured by the borrower’s fee simple interest in 3,089 one to four unit residential properties located in seven states: Arizona, Georgia, Florida, Nevada, Texas, Ohio and North Carolina. The floating rate loan will require interest-only payments and has a two-year term with three 12-month extension options.

KBRA used a hybrid analysis to evaluate the SFR transaction, which incorporated elements of both our 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, CMBS methodologies were used to determine the loan’s probability of default (PD). To determine loss given default (LGD), KBRA assumed the underlying collateral properties would be liquidated in the residential property market. For details, see our pre-sale report: https://www.krollbondratings.com/show_report/1357.

Silver Bay 2014-1 is a securitization of SFR homes. Seven classes of certificates will be issued, six of which are entitled to monthly distributions of interest and principal and one of which is a residual class.

           

Class

   

Rating

   

Balance (USD)

   

Rating Action

A     AAA (sf)     147,746,000     Preliminary
B     AA+ (sf)     37,681,000     Preliminary
C     A (sf)     32,978,000     Preliminary
D     BBB+ (sf)     30,423,000     Preliminary
E     BBB (sf)     17,148,000     Preliminary
F     BB+ (sf)     46,691,000     Preliminary
 

17g-7 Disclosure:

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found at http://www.krollbondratings.com/regulatory/17g-7.

About Kroll Bond Rating Agency:

KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings by creating new standards for assessing risk and by offering accurate, clear and transparent ratings. KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Kroll Bond Rating Agency, Inc.
Daniel Tegen, 646-731-2429
dtegen@kbra.com
or
Keith Kockenmeister, 646-731-2349
kkockenmeister@kbra.com
or
Julian Ferdman, 646-731-2379
jferdman@kbra.com
or
Nitin Bhasin, CFA, 646-731-2334
nbhasin@kbra.com

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Contacts

Kroll Bond Rating Agency, Inc.
Daniel Tegen, 646-731-2429
dtegen@kbra.com
or
Keith Kockenmeister, 646-731-2349
kkockenmeister@kbra.com
or
Julian Ferdman, 646-731-2379
jferdman@kbra.com
or
Nitin Bhasin, CFA, 646-731-2334
nbhasin@kbra.com