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KBRA Assigns Ratings to STAR 2025-SFR6

30 Jul 2025   |   New York

Contacts

KBRA assigns ratings to four classes of STAR 2025-SFR6 single-family rental pass-through certificates.

STAR 2025-SFR6 is a single-borrower, single-family rental (SFR) securitization that will be collateralized by a single $455.6 million floating-rate loan secured by mortgages on 1,579 income-producing single-family homes. The interest only floating-rate loan has an initial term of two-years and three one-year extension options. The subject transaction will be the third KBRA-rated securitization issued by Starwood.

The underlying single-family rental properties are located in or near 20 Core Based Statistical Areas (CBSAs) across ten states. The top-three CBSAs represent 72.6% of the portfolio and include Atlanta (43.7%), Phoenix (24.1%), and Orlando (4.7%). The aggregate BPO value of the underlying homes is $614.5 million, yielding an LTV of 74.1%. KBRA adjusted the BPOs, which yielded an aggregate value of $589.9 million, which represents a 4.0% haircut to the nominal BPO value. The resulting LTV based on KBRA’s adjusted BPO value was 77.2%.

KBRA uses a hybrid analysis to evaluate SFR transactions, which incorporates elements of both KBRA’s CMBS and RMBS methodologies, as the underlying real estate contains commercial and residential characteristics. As the properties generate a cash flow stream from tenant rental payments, elements of CMBS methodologies are used to determine the loan’s probability of default (PD). To determine loss given default (LGD), KBRA assumes the underlying properties would be liquidated in the residential property market. In determining LGD, KBRA subjects the real estate properties to home price stress scenarios using elements of RMBS methodologies. This hybrid analysis is described in more in KBRA’s U.S. Single-Family Rental Securitization Methodology.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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