KBRA assigns preliminary ratings to Morgan Stanley Home Mortgage Trust 2021-3 (MSRM 2021-3)



NEW YORK–() – Kroll Bond Rating Agency (KBRA) assigns provisional ratings to 26 classes of end-to-end mortgage certificates from Morgan Stanley Residential Mortgage Loan Loan Trust 2021-3 (MSRM 2021-3). MSRM 2021-3 includes 344 home mortgages with an aggregate principal balance of $ 317.6 million as of June 1, 2021. The underlying collateral includes large non-compliant (93.0%) and related (7.0%) loans, all of which were designated as qualified mortgages (QM).

KBRA’s rating approach included loan-level mortgage pool analysis using the RMBS credit model, examining the results of the due diligence of the loan file by a third party, analyzing the cash flow model of the transaction payment structure, analyzing the key parties to the transaction, and evaluating the legal structure of the transaction and documentation. This analysis is further described in our US RMBS ranking methodology.

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Information disclosure

Additional information on the key aspects of creditworthiness, a sensitivity analysis that examines what factors can affect these credit ratings and how they can lead to an upgrade or downgrade, and ESG factors (where they are a key driver of credit rating or rating forecast changes) can be found in the full rating report mentioned above.

A description of all material sources used to prepare the credit rating and information on the methodology (s) (including any significant models and sensitivity analysis of the related key rating assumptions, if applicable) used in determining the credit rating is available. in the Disclosure Forms located here

Information on the meaning of each rating category can be found here

Additional information disclosed in connection with this rating action is available in the disclosure form (s) referred to above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures is available at www.kbra.com

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full service rating agency registered with the US Securities and Exchange Commission as the NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority under the Temporary Registration Regime. In addition, KBRA has been designated by the Ontario Securities Commission as the rating organization for issuers of asset-backed securities to file a short prospectus or a completed prospectus. KBRA is also recognized as a credit rating provider by the National Insurance Commissioners Association.


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