KBRA Assigns Preliminary Ratings to FirstKey Homes 2020-SFR2 Trust


Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to 12 classes of FirstKey Homes 2020-SFR2 Trust (FKH 2020-SFR2) single-family rental pass-through certificates.

FKH 2020-SFR2 is a single-borrower, single-family rental (SFR) securitization that will be collateralized by a $2.5 billion loan secured by first priority mortgages on 14,288 income-producing single-family homes. The fixed-rate loan will require interest-only payments and have a five-year term. FKH 2020-SFR2 will be the second securitization issued by FirstKey Homes and the largest securitization issued in the SFR sector to date.

The underlying single-family rental properties are located in or near 41 core-based statistical areas (CBSAs) across 15 states. The top three CBSAs represent 36.1% of the portfolio and include Miami (14.7%), Atlanta (11.5%), and Indianapolis (9.8%). The aggregate BPO value of the underlying homes is $2.8 billion yielding an LTV of 90.0%. KBRA adjusted BPO value is at $2.6 billion. This

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