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KBRA Assigns Preliminary Ratings to Fannie Mae’s CAS 2025-R03

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 58 classes from Connecticut Avenue Securities Trust 2025-R03 (CAS 2025-R03), a credit risk sharing transaction with a total note offering of $619,454,000. The pool is characterized by loans with original loan-to-value (LTV) ratios that are greater than 80% and less than or equal to 97%.

The Reference Pool consists of 65,447 residential mortgage loans with an outstanding principal balance of approximately $23.2 billion as of the cut-off date. The Reference Obligations are fully documented, fully-amortizing, primarily 30-year fixed-rate mortgages (FRMs) of prime quality. The borrowers in the Reference Pool have a non-zero WA (NZWA) original credit score of 757 and a NZWA debt-to-income (DTI) ratio of 39.7%.

KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its KBRA RMBS Credit Model, Residential Asset Loss Model (REALM), an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction’s payment structure, reviews of key transaction parties and an assessment of the transaction’s legal structure and documentation. This analysis is further described in our U.S. RMBS Rating Methodology.

To access ratings and relevant documents, click here.

Click here to view the report.

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Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1008920

Contacts

Analytical Contacts

Tom Reilly, Director (Lead Analyst)
+1 646-731-2317
tom.reilly@kbra.com

Yanqi Bai, Associate
+1 646-731-1330
yanqi.bai@kbra.com

Patrick Gervais, Senior Managing Director (Rating Committee Chair)
+1 646-731-2426
patrick.gervais@kbra.com

Business Development Contact

Daniel Stallone, Managing Director
+1 646-731-1308
daniel.stallone@kbra.com

Kroll Bond Rating Agency, LLC

Details
Headquarters: New York City, New York
CEO: Jim Nadler
Employees: 400+
Organization: PRI

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Contacts

Analytical Contacts

Tom Reilly, Director (Lead Analyst)
+1 646-731-2317
tom.reilly@kbra.com

Yanqi Bai, Associate
+1 646-731-1330
yanqi.bai@kbra.com

Patrick Gervais, Senior Managing Director (Rating Committee Chair)
+1 646-731-2426
patrick.gervais@kbra.com

Business Development Contact

Daniel Stallone, Managing Director
+1 646-731-1308
daniel.stallone@kbra.com

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