KBRA Assigns Ratings to BAMLL Re-REMIC Trust 2024-FRR2
18 Apr 2024 | New York
KBRA is pleased to announce the assignment of ratings to four classes of BAMLL Re-REMIC Trust 2024-FRR2. BAMLL Re-REMIC Trust 2024-FRR2 is a re-securitization of the Class D (principal-only) and Class X2-A and X2-B (interest-only) certificates from the FREMF 2017-K65 securitization (the underlying trust). FREMF 2017-K65 is a ten-year, fixed-rate KBRA-rated securitization which is now 80 months seasoned. The Class D underlying collateral is the most subordinate principal class of the underlying trust. The Class X2-A underlying collateral has a notional balance equal to the aggregate outstanding principal balance of the Class A-1 and Class A-2 certificates of the underlying trust and the Class X2-B has a notional balance equal to the aggregate outstanding principal balance of the Class A-M, Class B, Class C and Class D certificates of the underlying trust. Both the Class X2-A and Class X2-B are paid at the top of the waterfall in the underlying transaction.
The re-securitization trust issued seven classes of certificates and an RR Interest, six of which are entitled to distributions of principal and interest, one of which is entitled to any investment income on, or any remaining funds in, the expense reserve account, and one class is a residual interest. Cash flow from the collateral certificates will be used to make payments to the Class A, B, C, D and E certificates (the non-risk retention re-securitization trust certificates) in sequential order, after required allocations for trust expenses and fees. Any losses which impact the Class D underlying certificates will in turn be borne by the non-risk retention re-securitization trust certificates in reverse sequential order. The non-risk retention certificates and the RR Interest will be paid pro rata and share losses pro rata.
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