KBRA Assigns Preliminary Ratings to PMT Issuer Trust - FMSR and PMT Co-Issuer Trust I - FMSR, Series 2024-FT1 Notes
June 25 2024 - 1:06PM
Business Wire
KBRA assigns a preliminary rating of ‘BBB- (sf)’ to the Series
2024-FT1 Term Notes from PMT Issuer Trust – FMSR and PMT Co-Issuer
Trust I - FMSR, master trust issuers of notes backed by
participation certificates evidencing participation interests in
MSRs that are created on mortgage loans originated or purchased by
PMC. The participation interests represent an undivided interest in
a portion of servicing fees payable to PMC as Servicer under the
Fannie Mae Lender Contract, the agreement pursuant to which the
Servicer performs loan servicing functions and is entitled to
retain servicing fees and to collect certain ancillary income in
accordance with the Fannie Mae Guide.
The rating is primarily dependent on the credit rating of PMT
(KBRA Rating: BB+/Stable) as repurchase guarantor under a repo
facility in support of the Issuers' rights to MSRs granted by
Fannie Mae to the Servicer, with certain transaction features
providing one notch uplift on the rating of the notes. The notes
are not a direct debt obligation of PMC or its affiliates; however,
PMT’s guarantee of PMC’s and PMH's obligations under the PC
Repurchase Agreement creates a significant indirect dependency on
PMT to make payments on the offered notes.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- Financial Institutions: U.S. Residential Mortgage Company
Rating Methodology
- Corporates & Financial Institutions: Corporate Instrument
Notching Global Methodology
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an 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. In addition, KBRA is
designated as a designated rating organization 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.
Doc ID: 1004877
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version on businesswire.com: https://www.businesswire.com/news/home/20240625347219/en/
Analytical Contacts
Sharif Mahdavian, Managing Director (Lead Analyst) +1
646-731-2301 sharif.mahdavian@kbra.com
Jack Kahan, Senior Managing Director, Head of Global RMBS +1
646-731-2486 jack.kahan@kbra.com
Joe Scott, Senior Managing Director (Rating Committee Chair) +1
646-731-2438 joe.scott@kbra.com
Business Development Contact
Justin Fuller, Managing Director +1 312-680-4163
justin.fuller@kbra.com