#Firstkey homes corporate series

However, structural features like the multi-tier DSCR test (based on actual cash flows) and a payment-in-kind (PIK) feature for class E1, class E2, class F1, class F2 and class G mitigate the risk.Our recovery analysis factors in both the net income generated by properties as well as the interest owed to the certificates, so a lower DSCR would correspond to a lower recovery value and lower advance rates, all else equal.Moody's DSCR for classes A through G (the interest-bearing bonds) and classes A through D (the non-PIK bonds) were 0.85x and 1.20x, respectively. Low DSCR increases the probability that the loan would default, which would occur if the collections on the collateral were not sufficient to pay interest on the certificates in any given month. We made a negative adjustment to our recoveries to account for this increased risk.Low DSCR: Moody's DSCR for this transaction is the lowest we have seen across FirstKey Homes' transactions. The corresponding Moody's LTV is 117.2%, which we consider to be high (FKH 2021-SFR3 is 112.00%). The total leverage of 99.50% in FKH 2022-SFR1 is higher than 95.00% leverage in FKH 2021-SFR3 and 90.00% leverage in both FKH 2021-SFR2 and FKH 2021-SFR1. Moody's uses the advance rate to determine whether the asset value is sufficient to support a targeted rating level given the size of the transaction's liabilities.Key Transaction FeaturesLeverage: The loan's leverage is high, which could reduce the sponsor's incentives to maintain the properties in good condition in a stressed economic environment.

#Firstkey homes corporate series

The trust will issue a series of certificates to which distributions of interest and principal, as applicable, will be paid in a sequential order.The advance rate to BPO for this transaction at stresses consistent with a Aaa rating level is 36.75%. The loan is secured by multiple properties, which reduces cash flow volatility because excess cash flow from one property can augment the cash flow of another to meet the debt service requirements. The transaction is a $1,161.2 million securitization backed by a single loan.

D, Assigned (P)Baa3 (sf) RATINGS RATIONALE Overview FKH 2022-SFR1 is FirstKey Homes' second single-family rental (SFR) securitization in 2022.

The properties were acquired by the affiliates of CSFR Holdings I, L.P., the securitization sponsor, between August 2021 and November 2021.The complete rating action is as follows:Issuer: FirstKey Homes 2022-SFR1 Trust Cl. Rating Action: Moody's assigns provisional ratings to FirstKey Homes 2022-SFR1 TrustGlobal Credit Research - New York, Ma- Moody's Investors Service ('Moody's') has assigned provisional ratings to four classes of certificates backed by one fixed-rate loan secured by mortgages on 3,292 single-family rental properties owned by FirstKey Homes 2022-SFR1 Trust (FKH 2022-SFR1) securitization.