Morningstar : Credit Ratings Assigns Preliminary Ratings for American Residential Properties 2014-SFR1 Trust (ARP 2014-SFR1)

NEW YORK, Aug. 6, 2014-Morningstar Credit Ratings, LLC today assigned preliminary ratings to six classes of single-family rental pass-through certificates from American Residential Properties 2014-SFR1 (ARP 2014-SFR1), a single-family rental securitization. The preliminary ratings are based on information known to Morningstar as of Aug. 6, 2014.

PRELIMINARY RATINGS (AS OF AUG. 6, 2014)
Class Balance Preliminary Ratings
Class A $184,892,000 AAA
Class B $35,976,000 AA+
Class C $26,348,000 A+
Class D $30,963,000 BBB+
Class E $40,015,000 BBB
Class F $24,476,000 BBB-

The collateral backing the ARP 2014-SFR1 transaction consists of approximately 2,880 single-family properties with a total value of $489,620,955. American Residential Properties has acquired all of the properties, which are 96.0 percent rented, with an average monthly rental payment of approximately $1,280. Properties in Texas and Arizona constitute the majority of the pool, representing approximately 36.9 percent and 29.1 percent of the assets, respectively. American Residential Properties has acquired mortgages on the properties for the benefit of the securitization trust.

For complete details about the preliminary ratings of this transaction, Morningstar's Presale Analysis Package, including the Presale Report and the Representations, Warranties, and Enforcement Mechanisms, is available under the RMBS tab in the Ratings Reports section on https://ratingagency.morningstar.com. Information subsequently received could result in the assignment of final ratings that differ from the preliminary ratings.

Morningstar's "Single-Family Rental Securitization Ratings Methodology" for new-issue and surveillance ratings of securities backed by pools of single-family rental properties and the "Guide to the Morningstar Single-Family Rental Quantitative Analysis and Subordination Model," which details Morningstar's quantitative model for assessing single-family rental securities, are both available in the Analysis and Considerations section at https://ratingagency.morningstar.com.

About Morningstar Credit Ratings, LLC and Morningstar, Inc.
Morningstar Credit Ratings, LLC is a Nationally Recognized Statistical Rating Organization (NRSRO) that specializes in structured credit research and ratings and offers a wide array of services including new-issue ratings and analysis, operational risk assessments, surveillance services, data, and technology solutions.

Morningstar Credit Ratings, LLC is a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research in North America, Europe, Australia, and Asia.

Morningstar, Inc. offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on approximately 473,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 12 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $169 billion in assets under advisement and management as of June 30, 2014. The company has operations in 27 countries.

Morningstar, Inc. is not an NRSRO, and its credit ratings on corporate issuers are not NRSRO credit ratings.

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