KBRA assigns preliminary ratings to PRMI Securitization Trust 2021-1 (PRMI 2021-1)
NEW YORK–(BUSINESS WIRE) – The Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 48 classes of mortgage transmission certificates of PRMI Securitization Trust 2021-1 (PRMI 2021-1), a premier RMBS transaction.
PRMI 2021-1 represents the first RMBS transaction issued by PR Mortgage Investment, LP (PRMI) through its PRMI shelf. The underlying pool consists of 100% fixed rate, fully amortizing, agency eligible mortgages, with properties located only in California and from a single originator Owning Corporation (Owning). This prime RMBS transaction is secured by a pool of 710 residential mortgage loans with a total stated principal balance of approximately $ 479.3 million as of the deadline. The pool is characterized by significant borrower’s equity in each mortgaged property as evidenced by the original WA LTV of 57.7% and the original WA CLTV of 57.7%. The initial weighted average credit score is 772.
KBRA’s scoring approach incorporated 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, an analysis modeling the 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.
Further information on key credit considerations, sensitivity analyzes that take into account the factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key driver of change in credit rating or rating outlook) can be found in the comprehensive rating report mentioned above.
A description of all substantially significant sources that were used in preparing the credit rating and information on the methodology (s) (including significant models and sensitivity analyzes of key relevant rating assumptions, where applicable applicable) used to determine the credit rating are available in the information disclosure form (s) located here.
Information on the meaning of each rating category can be found here.
Additional information relating to this rating action is available in the Information Disclosure Form (s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and information is 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 CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as CRA with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is designated as a 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.