Morningstar DBRS Takes Credit Rating Actions on Eight U.S. RMBS Transactions

DBRS, Inc. (Morningstar DBRS) reviewed 57 classes from eight U.S. single-family rental transactions. Of the 57 classes reviewed, Morningstar DBRS confirmed 37 credit ratings, upgraded 18 credit ratings, and discontinued two credit ratings due to full repayment of the outstanding bond balances.

FirstKey Homes 2021-SFR1 Trust
-- Single-Family Rental Pass-Through Certificate, Class A confirmed at AAA (sf)
-- Single-Family Rental Pass-Through Certificate, Class B upgraded to AAA (sf) from AA (high) (sf)
-- Single-Family Rental Pass-Through Certificate, Class C upgraded to AA (high) (sf) from A (high) (sf)
-- Single-Family Rental Pass-Through Certificate, Class D upgraded to A (high) (sf) from BBB (high) (sf)
-- Single-Family Rental Pass-Through Certificate, Class E1 upgraded to A (sf) from BBB (sf)
-- Single-Family Rental Pass-Through Certificate, Class E2 upgraded to A (low) (sf) from BBB (low) (sf)
-- Single-Family Rental Pass-Through Certificate, Class E upgraded to A (low) (sf) from BBB (low) (sf)
-- Single-Family Rental Pass-Through Certificate, Class F1 upgraded to BBB (low) (sf) from BB (sf)
-- Single-Family Rental Pass-Through Certificate, Class F2 upgraded to BBB (low) (sf) from BB (sf)
-- Single-Family Rental Pass-Through Certificate, Class F3 confirmed at BB (low) (sf)
-- Single-Family Rental Pass-Through Certificate, Class F confirmed at BB (low) (sf)
-- Single-Family Rental Pass-Through Certificate, Class G confirmed at B (high) (sf)

New Residential Mortgage Loan Trust 2022-SFR2
-- Single-Family Rental Pass-Through Certificate, Class A confirmed at AAA (sf)
-- Single-Family Rental Pass-Through Certificate, Class B confirmed at AA (high) (sf)
-- Single-Family Rental Pass-Through Certificate, Class C confirmed at A (high) (sf)
-- Single-Family Rental Pass-Through Certificate, Class D confirmed at A (low) (sf)
-- Single-Family Rental Pass-Through Certificate, Class E-1 confirmed at BBB (sf)
-- Single-Family Rental Pass-Through Certificate, Class E-2 confirmed at BBB (low) (sf)
-- Single-Family Rental Pass-Through Certificate, Class F confirmed at BB (low) (sf)

PATH 2022-1 Trust
-- Single-Family Rental Pass-Through Certificates, Class C discontinued
-- Single-Family Rental Pass-Through Certificates, Class D discontinued
-- Single-Family Rental Pass-Through Certificates, Class E-1 upgraded to A (high) (sf) from BBB (high) (sf)
-- Single-Family Rental Pass-Through Certificates, Class E-2 upgraded to BBB (sf) from BBB (low) (sf)
-- Single-Family Rental Pass-Through Certificates, Class F confirmed at BB (low) (sf)
-- Single-Family Rental Pass-Through Certificates, Class G confirmed at B (sf)

Tricon American Homes 2018-SFR1 Trust
-- TAH 2018-SFR1, Class A confirmed at AAA (sf)
-- TAH 2018-SFR1, Class B confirmed at AAA (sf)
-- TAH 2018-SFR1, Class C upgraded to AA (high) (sf) from AA (low) (sf)
-- TAH 2018-SFR1, Class D upgraded to AA (low) (sf) from A (sf)
-- TAH 2018-SFR1, Class E upgraded to A (high) (sf) from A (low) (sf)

Tricon American Homes 2019-SFR1 Trust
-- TAH 2019-SFR1, Class A confirmed at AAA (sf)
-- TAH 2019-SFR1, Class B confirmed at AAA (sf)
-- TAH 2019-SFR1, Class C confirmed at AAA (sf)
-- TAH 2019-SFR1, Class D upgraded to AA (sf) from AA (low) (sf)
-- TAH 2019-SFR1, Class E upgraded to A (sf) from A (low) (sf)
-- TAH 2019-SFR1, Class F upgraded to BBB (sf) from BBB (low) (sf)

Tricon American Homes 2020-SFR2 Trust
-- Single-Family Rental Pass-Through Certificate, Class A confirmed at AAA (sf)
-- Single-Family Rental Pass-Through Certificate, Class B upgraded to AAA (sf) from AA (high) (sf)
-- Single-Family Rental Pass-Through Certificate, Class C upgraded to AA (low) (sf) from A (high) (sf)
-- Single-Family Rental Pass-Through Certificate, Class D confirmed A (low) (sf)
-- Single-Family Rental Pass-Through Certificate, Class E-1 confirmed at BBB (sf)
-- Single-Family Rental Pass-Through Certificate, Class E-2 confirmed at BBB (low) (sf)

Tricon Residential 2021-SFR1 Trust
-- Single-Family Rental Pass-Through Certificate, Class A confirmed at AAA (sf)
-- Single-Family Rental Pass-Through Certificate, Class B confirmed at AA (high) (sf)
-- Single-Family Rental Pass-Through Certificate, Class C confirmed at AA (low) (sf)
-- Single-Family Rental Pass-Through Certificate, Class D confirmed at A (low) (sf)
-- Single-Family Rental Pass-Through Certificate, Class E-1 confirmed at BBB (high) (sf)
-- Single-Family Rental Pass-Through Certificate, Class E-2 confirmed at BBB (low) (sf)
-- Single-Family Rental Pass-Through Certificate, Class F confirmed at BB (sf)
-- Single-Family Rental Pass-Through Certificate, Class G confirmed at B (high) (sf)

Progress Residential 2024-SFR1 Trust
-- Single-Family Rental Pass-Through Certificate, Class A confirmed at AAA (sf)
-- Single-Family Rental Pass-Through Certificate, Class B confirmed at AA (high) (sf)
-- Single-Family Rental Pass-Through Certificate, Class C confirmed at AA (low) (sf)
-- Single-Family Rental Pass-Through Certificate, Class D confirmed at BBB (high) (sf)
-- Single-Family Rental Pass-Through Certificate, Class E-1 confirmed at BBB (sf)
-- Single-Family Rental Pass-Through Certificate, Class E-2 confirmed at BBB (low) (sf)
-- Single-Family Rental Pass-Through Certificate, Class F confirmed at BB (sf)

The credit rating confirmations reflect asset performance and credit-support levels that are consistent with the current credit ratings. The credit rating upgrades reflect a positive performance trend and an increase in credit support sufficient to withstand stresses at the new credit rating level. The discontinued credit ratings reflect the full repayment of principal to the bondholders.

Morningstar DBRS' credit rating actions are based on the following analytical considerations:

-- Key performance measures as reflected in month-over-month changes in vacancy and delinquency, quarterly analysis of the actual expenses, credit enhancement increases since deal inception, and bond paydown factors.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024) at https://dbrs.morningstar.com/research/437781.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology applicable to the credit ratings is Rating and Monitoring U.S. Single-Family Rental Securitizations (September 30, 2024) https://dbrs.morningstar.com/research/440087.

Other methodologies referenced in this transaction are listed at the end of this press release.

The credit ratings were initiated at the request of the rated entities.

The rated entity or its related entities did participate in the credit rating process for these credit rating actions.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with these credit rating actions.

These are solicited credit ratings.

DBRS, Inc.
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New York, NY 10005 USA
Tel. +1 212 806-3277

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

-- Interest Rate Stresses for U.S. Structured Finance Transactions (February 26, 2024)
https://dbrs.morningstar.com/research/428623
-- Legal Criteria for U.S. Structured Finance (December 3, 2024)
https://dbrs.morningstar.com/research/444064
-- Operational Risk Assessment for U.S. RMBS Originators and Servicers (September 30, 2024)
https://dbrs.morningstar.com/research/440086

For more information on this credit or on this industry, visit dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.