KBRA assigns preliminary ratings to TRK 2021-INV2 Trust
NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to six categories of mortgage transfer certificates from TRK 2021-INV2 Trust, a $ 322.7 million RMBS transaction for non-privileged investors. TRK 2021-INV2 represents the first RMBS transaction sponsored by Toorak Capital Partners, LLC. The underlying collateral consists of 1,092 rental mortgages underwritten using Debt Service Coverage Ratios (DSCR). All loans have been made for business purposes and are exempt from TILA-RESPA (TRID) Repayment Ability (ATR) and Integrated Disclosure Rules.
The TRK 2021-INV2 pool is primarily comprised of 30-year fixed rate mortgages (99.3% of the pool), and the loans have an initial weighted average (WA) credit score of 737, an initial loan-to-value ratio. (LTV) WA) of 70.9% and a combined original WA LTV (CLTV) of 70.9%. The original WA DSCR has approximately 1.4x coverage.
KBRA’s scoring approach incorporated a loan-level analysis of the mortgage pool through its US RMBS mortgage default and loss model, a review of the results of due diligence of third-party loan files, a modeling analysis cash flow of the transaction payment structure, reviews of the key transaction parties and an assessment of the legal structure and documentation of the transaction. This analysis is described in more detail in our US RMBS rating methodology. KBRA also used its US single-family rental securitization methodology to analyze loans from multi-property investors 1 through 4 in the pool.
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Further information on key credit considerations, sensitivity analyzes which examine the factors that may affect these credit ratings and how they could lead to an improvement or a downgrade, and ESG factors (when they are a factor). key to the change in credit rating or rating outlook) can be found in the full assessment report mentioned above.
A description of all substantially significant sources that were used to prepare the credit rating and information about the method (s) (including significant models and sensitivity analyzes of relevant key rating assumptions, if any) used to determine The credit rating is available in the Information Disclosure Form (s) located here.
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Further information relating to this rating measure is available in the information disclosure form (s) referenced above. Additional information regarding KBRA’s policies, methodologies, rating scales and disclosures are available at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.