2014

Morningstar Credit Ratings Assigns Preliminary Ratings to Invitation Homes 2013-SFR1 (IH 2013-SFR1)

NEW YORK, Oct. 31, 2013 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings to five classes of single-family rental pass-through certificates from Invitation Homes 2013-SFR1 (IH 2013-SFR1), a single-family rental securitization. IH 2013-SFR1 is the first issuance of rated bonds backed by the cash flows and value of single-family rental properties.

The collateral backing the IH 2013-SFR1 transaction consists of approximately 3,207 single-family properties with a total value of $638,849,844. Invitation Homes has acquired all of the properties, which are rented, with an average monthly rental payment of approximately $1,312. Properties in California and Arizona constitute the majority of the pool, representing approximately 40.1 percent and 34.0 percent of the assets, respectively. Invitation Homes has acquired mortgages on the properties for the benefit of the securitization trust.

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. Morningstar's "Single-Family Rental Securitization Ratings Methodology" for new-issue and surveillance ratings of securities backed by pools of single-family rental properties is available at ratingagency.morningstar.com/analysisandconsiderations. After Morningstar publishes the preliminary ratings and pre-sale report, it will monitor and update its ratings as necessary.  

A "Guide to the Morningstar Single-Family Rental Quantitative Analysis and Subordination Model," which details Morningstar's quantitative model for assessing single-family rental securities, is also available at ratingagency.morningstar.com/analysisandconsiderations.

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.

Invitation Homes 2013-SFR1 Preliminary Ratings

Class

Rating

Balance

A

AAA

$278,700,000

B

AA

$34,300,000

C

A

$47,100,000

D

BBB+

$31,500,000

E

BBB-

$46,010,000

F

NR

$41,527,000

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 437,000 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 has more than $176 billion in assets under advisement and management as of Sept. 30, 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.

©2013 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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