2014

Morningstar Credit Ratings Assigns Preliminary Ratings for Colony American Homes 2014-1 (CAH 2014-1)

NEW YORK, March 20, 2014 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings to four classes of single-family rental pass-through certificates from Colony American Homes 2014-1 (CAH 2014-1), a single-family rental securitization. CAH 2014-1 is the second 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 March 20, 2014.

PRELIMINARY RATINGS (AS OF MARCH 20, 2014)

Class

Balance

Preliminary Ratings

Class A

$291,000,000

AAA

Class B

$42,000,000

AA

Class C

$56,000,000

A

Class D

$40,500,000

BBB+

Class E

$84,100,000

NR






The collateral backing the CAH 2014-1 transaction consists of 3,399 single-family properties with a total value of $733,675,853. Colony American Homes has acquired all of the properties, which are rented as of the collateral cut-off date of Feb. 1, 2014, with an average monthly rental payment of approximately $1,389. Properties in California and Florida constitute the majority of the pool, representing approximately 37.7 percent and 20.3 percent of the assets, respectively. Colony American Homes 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 Pre-Sale 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 pre-sale 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 the "Guide to the Morningstar Single-Family Rental Quantitative Analysis and Subordination Model," which details Morningstar's quantitative model for assessing single-family rental securities, are both available via 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 446,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 10 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 $159 billion in assets under advisement and management as of Dec. 31, 2013. 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 Contacts:
Michelle Weiss, +1 267-960-6014 or michelle.weiss@morningstar.com
Nadine Youssef, +1 312-696-6601 or nadine.youssef@morningstar.com

SOURCE Morningstar, Inc.



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