KBRA assigns preliminary ratings to Morgan Stanley Home Mortgage Trust 2021-5 (MSRM 2021-5)



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 2021-5 (MSRM 2021-5). MSRM 2021-5 includes 495 home mortgages with an aggregate core balance of $ 478.3 million as of August 1, 2021. The underlying collateral includes large non-compliant (99.9%) and matched (0.1%) loans, all of which have been identified as qualified mortgages (QM).

KBRA’s rating approach included loan-level mortgage pool analysis using the RMBS credit model, third-party due diligence analysis of the loan file, cash flow modeling, transaction payment structure analysis, transaction key party analysis, and an assessment of the legal structure of the transaction and documentation. This analysis is further described in our US RMBS ranking methodology.

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Additional information on the key aspects of creditworthiness, a sensitivity analysis that examines the factors that 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 a rating organization for issuers of asset-backed securities to file a short prospectus or finished prospectus. KBRA is also recognized as a credit rating provider by the National Insurance Commissioners Association.


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