Morningstar : Credit Ratings Assigns Preliminary Ratings to Home Partners of America 2016-1 (HPA 2016-1)

NEW YORK, Jan. 12, 2016 /PRNewswire/ -- Morningstar Credit Ratings, LLC today assigned preliminary ratings to five classes of single-family rental pass-through certificates from Home Partners of America 2016-1 (HPA 2016-1), a single-family rental securitization. The preliminary ratings are based on information disclosed and known to Morningstar as of Jan. 12, 2016.

    Preliminary Ratings (as of Jan. 12, 2016)


    Class                                     Balance/Notional Amount ($) Morningstar Preliminary Rating


    Class A                                                   256,900,000                             AAA

    Class B                                                    44,180,000                              AA

    Class C                                                    34,363,000                               A

    Class D                                                    35,999,000                            BBB+

    Class E                                                    41,000,000                            BBB-

The collateral backing the HPA 2016-1 transaction consists of approximately 2,232 properties with a total value of $654,523,539. Home Partners of America has acquired all of the properties, which are 99.6 percent rented as of the collateral cutoff date of Nov. 30, 2015, with an average monthly rental payment of approximately $2,160. Properties in Texas, Illinois, and Florida constitute the majority of the pool, representing approximately 19.2 percent, 18.6 percent, and 16.2 percent of the assets, respectively. Home Partners of America has acquired mortgages on the properties for the benefit of the securitization trust.

Morningstar's Presale Analysis Package, including the Presale Report; Rule 17g-7 Disclosure Form; and the Representations, Warranties, and Enforcement Mechanisms, is available under the Structured Finance tab in the Ratings/Surveillance section at https://ratingagency.morningstar.com. Morningstar could receive subsequent information that may result in final ratings that differ from the preliminary ratings.

About Morningstar Credit Ratings, LLC and Morningstar, Inc.
Morningstar Credit Ratings, LLC is a nationally recognized statistical rating organization (NRSRO) offering a wide array of services including new-issue ratings and analysis, operational risk assessments, surveillance services, data, and technology solutions.

Morningstar Credit Ratings, LLC is a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research in North America, Europe, Australia, and Asia.

Morningstar, Inc. offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 17 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $170 billion in assets under advisement and management as of Sept. 30, 2015. The company has operations in 27 countries. Morningstar, Inc. is not an NRSRO and does not issue NRSRO credit ratings.

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SOURCE Morningstar, Inc.