KBRA Assigns Preliminary Ratings to BAMLL Re-REMIC Trust 2024-FRR1
11 Jan 2024 | New York
KBRA is pleased to announce the assignment of preliminary ratings to four classes of BAMLL Re-REMIC Trust 2024-FRR1. BAMLL Re-REMIC Trust 2024-FRR1 is a re-securitization of the Class B (principal-only) and Class X2-A (interest-only) Certificates of the FREMF 2017-K1503 securitization (the underlying trust). FREMF 2017-K1503 is a fifteen-year, fixed-rate securitization which is now almost seven years seasoned. The Class B is the most subordinate principal class of the underlying trust. The Class X2-A collateral has a notional balance equal to the aggregate outstanding principal balance of the Class A-1, Class A-2, and Class A-3 certificates of the underlying trust, and is paid at the top of the waterfall in that transaction.
The re-securitization trust will issue eight classes of certificates, two of which are entitled to distributions of principal and interest, four of which are entitled to principal-only distributions, one of which is entitled to any investment income on, or any remaining funds in the expense reserve account, and one class is a residual interest. Cash flow from the collateral certificates will be used to make payments to the re-securitization trust certificates in sequential order, after required allocations for trust expenses and fees. Any losses which impact the underlying Class B certificates will in turn be borne by the re-securitization trust certificates in reverse sequential order.
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