KBRA Upgrades 18 Ratings, Downgrades One Rating and Affirms All Other Ratings on CoreVest American Finance SFR Transactions

KBRA recently completed a surveillance review of the 12 outstanding KBRA-rated multi-borrower, single-family rental (SFR) securitizations issued by CoreVest American Finance (CAF) between 2018 and 2022. These transactions are collectively comprised of 109 securities with a total outstanding principal balance of $1.8 billion. Of these, 88 securities with an aggregate principal balance of $1.7 billion are rated by KBRA. The surveillance review resulted in the upgrade of ratings of 18 classes ($348.5 million) across eight deals, the downgrade of one class ($4.5 million) in another deal, and the affirmation of the ratings of 69 classes ($1.3 billion). The rating changes are summarized in the below table.

The affirmations took into consideration the stability in the class subordination levels, along with the continued performance of the underlying collateral. The upgrades were largely driven by meaningful increases in the subordination level for each class, primarily owing to loan payoffs, with consideration also given to deleveraging of the underlying loans as a result of amortization and estimated home price appreciation, as well as property cash flow trends. The downgrade is a result of a degradation in credit support from K-LOCs with expected losses in the one transaction.

Details concerning the classes with rating changes are as follows:

Click here to view the report.

For additional information regarding a specific transaction, see the list below to access ratings, reports, and disclosures:

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