KBRA Assigns Preliminary Ratings to FREMF 2024-K756 and Freddie Mac Structured Pass-Through Certificate Series K-756
22 Julio 2024 - 10:14AM
Business Wire
KBRA is pleased to announce the assignment of preliminary
ratings to four classes of FREMF Series 2024-K756 mortgage
pass-through certificates and three classes of Freddie-Mac
structured pass-through certificates (SPCs), Series K-756. FREMF
2024-K756 is a $906.0 million CMBS multi-borrower transaction.
Freddie Mac will guarantee six classes of certificates issued in
the underlying Series 2024-K756 securitization and will deposit the
guaranteed underlying certificates into a separate trust that will
issue the SPCs.
The underlying transaction is collateralized by 30 fixed-rate
multifamily mortgage loans. The loans have principal balances that
range from $3.1 million to $82.2 million. The largest loan in the
pool, The Pointe On Westshore (9.1%), has an in-trust principal
balance of $82.2 million and is secured by a mid-rise multifamily
complex located in Tampa, Florida. The five largest loans represent
32.3% of the cut-off date balance and also include Scottsdale
Entrada (6.1%), The Point At Palisades (5.8%), Avonlea Towne Lake
(5.7%), and Madison Prairie Point (5.7%). The assets are located in
19 states, with the three largest concentrations in Florida
(26.9%), Virginia (10.1%), and Texas (7.7%).
KBRA’s analysis of the underlying transaction incorporated our
CMBS Multi-Borrower rating process that begins with our analysts’
evaluation of the underlying collateral properties’ financial and
operating performance, which is used to determine KBRA’s estimate
of sustainable net cash flow (KNCF) and KBRA value using our U.S.
CMBS Property Evaluation Methodology. KBRA’s weighted average KNCF
for the portfolio is 5.8% less than the issuer’s NCF. KBRA
capitalization rates were applied to each asset’s KNCF to derive
individual property values that, on an aggregate basis, were 39.7%
less than third-party appraisal values. The weighted average KBRA
capitalization rate for the transaction is 8.57%. The KBRA credit
model deploys rent and occupancy stresses, probability of default
regressions, and loss-given default calculations to determine
losses for each collateral loan, which are then used to assign our
credit ratings.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- CMBS: North American CMBS Multi-Borrower Rating
Methodology
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS
Transactions
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
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) is a full-service credit
rating agency 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 by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1005189
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Analytical Contacts
Nicholas Kuhn, Senior Analyst (Lead Analyst) +1 646-731-2489
nicholas.kuhn@kbra.com
Patrick McQuinn, Senior Director +1 646-731-2445
patrick.mcquinn@kbra.com
Christina Moy, Managing Director (Rating Committee Chair) +1
646-731-2327 christina.moy@kbra.com
Business Development Contact
Daniel Stallone, Managing Director +1 646-731-1308
daniel.stallone@kbra.com