KBRA Assigns Preliminary Ratings to Verus Securitization Trust 2022-4 (VERUS 2022-4)
NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to four classes of Verus Securitization Trust Mortgage Notes 2022-4 (VERUS 2022-4), a $708.8 million non-senior RMBS transaction. The underlying collateral, consisting of 1,391 residential mortgage loans, is characterized by a significant concentration of loans underwritten using alternative income documents. The borrowers in the group in question possess a non-zero initial WA credit score of 731 and exhibit substantial equity in each mortgaged property, with WA LTV and combined LTV (CLTV) ratios of 69.9%.
KBRA’s scoring approach incorporated loan-level analysis of the mortgage pool through its KBRA RMBS credit model, due diligence results review of third-party loan files, cash flow modeling analysis of the payment structure of the transaction, reviews of the principal parties to the transaction and an assessment of the legal structure and documentation of the transaction. This analysis is further described in our US RMBS Rating Methodology.
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Further information on key credit considerations, sensitivity analyzes that consider 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 factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.
A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of the main relevant rating assumptions, the where applicable) used to determine 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 metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures 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 an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. In addition, KBRA is designated as the Designated Rating Agency by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.