Morningstar Credit Ratings Assigns Preliminary Ratings for American Homes 4 Rent 2014-SFR1 (AH4R 2014-SFR1)

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 https://ratingagency.morningstar.com.

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 technology solutions.

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.

MORN-R

Media Contact:
Michelle Weiss, +1 267-960-6014 or michelle.weiss@morningstar.com

SOURCE Morningstar, Inc.



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