Fitch Ratings has assigned expected ratings and issued a presale report for the FREMF 2024-K755 Mortgage Trust Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates Series K-755.

RATING ACTIONS

Entity / Debt

Rating

Freddie Mac SPC K-755

A-1

LT

AAA(EXP)sf

Expected Rating

A-1

ULT

AAA(EXP)sf

Expected Rating

A-2

LT

AAA(EXP)sf

Expected Rating

A-2

ULT

AAA(EXP)sf

Expected Rating

A-M

LT

NR(EXP)sf

Expected Rating

A-M

ULT

NR(EXP)sf

Expected Rating

X1

LT

AAA(EXP)sf

Expected Rating

X1

ULT

AAA(EXP)sf

Expected Rating

X3

LT

NR(EXP)sf

Expected Rating

Page

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VIEW ADDITIONAL RATING DETAILS

FREMF 2024-K755 Mortgage Trust Multifamily Mortgage Pass-Through Certificates Series 2024-K755

(FREMF 2024-K755):

$22,200,000a class A-1 'AAAsf'; Outlook Stable;

$701,997,000a class A-2 'AAAsf'; Outlook Stable;

$724,197,000ab class X1 'AAAsf'; Outlook Stable;

$724,197,000bc class X2-A 'AAAsf'; Outlook Stable.

Fitch has also assigned expected Unenhanced Ratings, which reflect the underlying credit worthiness absent the Freddie Mac guarantee, as well as Stable Rating Outlooks for FREMF 2024-K755 of 'AAAsf'/Stable for classes A-1, A-2 and X1. Fitch has not assigned an Unenhanced Rating to class X2-A as that class is not guaranteed by Freddie Mac, and the expected 'AAAsf'/Stable long-term rating already reflects the underlying creditworthiness absent the guarantee.

Freddie Mac Structured Pass-Through Certificates, Series K-755 (Freddie Mac SPC K-755):

$22,200,000a class A-1 'AAAsf'; Outlook Stable;

$701,997,000a class A-2 'AAAsf'; Outlook Stable;

$724,197,000ab class X1 'AAAsf'; Outlook Stable.

Fitch has also assigned expected Unenhanced Ratings, which reflect the underlying creditworthiness absent the Freddie Mac guarantee, as well as Stable Outlooks to Freddie Mac SPC K-755 of 'AAAsf'/Stable for classes A-1, A-2 and X1.

(a)	Guaranteed by Freddie Mac.
(b)	Notional amount and interest only
(c)	Privately placed and pursuant to Rule 144a. CE - Credit enhancement. NR - Not rated.

The FREMF 2024-K755 consists of both guaranteed and unguaranteed certificates. The underlying guaranteed certificates consist of classes A-1, A-2, A-M, X1, XAM, and X3. These certificates will be purchased by Freddie Mac to be deposited into the Freddie Mac SPC K-755 trust to back the Freddie Mac SPC K-755 certificates.

Fitch does not expect to rate the following classes of FREMF 2024-K755: $98,508,000 class A-M; $98,508,000 interest-only (IO)-class XAM; $43,301,000 IO-class X3; $141,809,000 IO-class X2-B; and $43,301,000 class D. Additionally, Fitch does not expect to rate the following classes of Freddie Mac SPC K-755: $98,508,000 class A-M; $98,508,000 IO-class XAM; $43,301,0000 IO-class X3.

These expected ratings and Unenhanced Ratings are based on information provided by the issuer as of April 2, 2024.

Transaction Summary

The certificates represent the beneficial ownership interest in the trust. The trust's primary assets are 39 fixed-rate loans secured by 39 multifamily properties with an aggregate principal balance of approximately $866.0 million as of the cutoff date. Freddie Mac SPC K-755 represents a pass-through interest in the corresponding class of securities issued by FREMF 2024-K755. Each Freddie Mac SPC K-755 security has the same designation as its underlying FREMF 2024-K755 class.

KEY RATING DRIVERS

Fitch Net Cash Flow: Fitch performed cash flow analyses on 25 loans totaling 83.7% of the pool by balance. Fitch's cash flow sample included the largest 20 loans in the pool, as well as five loans outside the top 20. Fitch's resulting net cash flow (NCF) of $69.2 million represents a 12.0% decline from the issuer's underwritten NCF of $78.7million.

Low Leverage Compared to Recent Transactions: The pool has lower leverage compared with that of recent Freddie Mac seven-year transactions (K7 Series) rated by Fitch. The pool's Fitch loan-to-value ratio (LTV) of 113.1% is lower compared to the 2022 and 2023 averages for Fitch-rated K7 series of 138.6% and 117.3%, respectively. The pool's Fitch NCF debt yield (DY) of 7.99% is higher than the 2022 and 2023 averages for Fitch-rated K7 Series transactions of 6.0% and 7.53%, respectively.

Lower Pool Concentration: The top 10 loans represent 55.7% of the pool, which is lower than the 2022 and 2023 averages for Fitch-rated K7 Series of 59.7% and 63.3%, respectively.

Interest-Only Loans: The pool contains 14 full-term interest-only (IO) loans, representing 46.5% of the pool's cutoff balance. The pool's concentration of IO loans is lower than the 2022 and 2023 average for Fitch-rated K7 Series of 54.5% and 47.3%, respectively. The pool's scheduled paydown of 2.8% is lower than the 2022 and 2023 average for Fitch-rated K7 Series of 4.5% and 2.9%, respectively.

Freddie Mac Guarantee: The expected ratings of classes A-1, A-2 and X1 factor added support via a guarantee from Freddie Mac. Freddie Mac is currently rated 'AA+'/'F1+'/Stable by Fitch. The certificates will, at all times, be rated at the higher of Freddie Mac's rating or the rating based on the underlying collateral, without accounting for the guarantee.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

Declining cash flow decreases property value and capacity to meet debt service obligations. The table below indicates the model-implied rating sensitivity to changes in one variable, Fitch NCF:

Original Rating: 'AAAsf';

10% NCF decline: 'AA+sf'.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

Fitch did not consider the implementation of positive stresses for this transaction as the rated classes are at the highest rating level and cannot be upgraded further. The presale report includes a detailed explanation of additional stresses and sensitivities on page 11 of the report.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Fitch was provided with Form ABS Due Diligence-15E (Form 15E) as prepared by Ernst & Young LLP. The third-party due diligence described in Form 15E focused on a comparison and re-computation of certain characteristics with respect to each of the mortgage loans. Fitch considered this information in its analysis and it did not have an effect on Fitch's analysis or conclusions.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

REPRESENTATIONS, WARRANTIES AND ENFORCEMENT MECHANISMS

A description of the transaction's representations, warranties and enforcement mechanisms (RW&Es) that are disclosed in the offering document and which relate to the underlying asset pool is available by clicking the link to the Appendix. The appendix also contains a comparison of these RW&Es to those Fitch considers typical for the asset class as detailed in the Special Report titled 'Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions'.

A description of the transaction's representations, warranties and enforcement mechanisms (RW&Es) that are disclosed in the offering document and which relate to the underlying asset pool is available by clicking the link to the Appendix. The appendix also contains a comparison of these RW&Es to those Fitch considers typical for the asset class as detailed in the Special Report titled 'Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions'.

ESG Considerations

The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.

Additional information is available on www.fitchratings.com

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