OREANDA-NEWS. Fitch Ratings has issued its presale report on B2R Mortgage Trust 2015-1 Mortgage Pass-Through Certificates.

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

--\$112,838,000 class A-1 'AAAsf'; Outlook Stable;
--\$39,226,000 class A-2 'AAAsf'; Outlook Stable;
--\$152,064,000* class X-A 'AAAsf'; Outlook Stable;
--\$34,429,000* class X-B 'A-sf'; Outlook Stable;
--\$20,657,000 class B 'AA-sf'; Outlook Stable;
--\$13,772,000 class C 'A-sf'; Outlook Stable;
--\$16,354,000 class D 'BBB-sf'; Outlook Stable.

(*) Notional amount and interest-only.

Fitch will host an investor teleconference April 2, 2015 at 11:00am to discuss its ratings analysis for the first multiborrower single family rental (SFR) securitization.

The call will provide investors an understanding of primary rating considerations, similarities and differences to single borrower SFR and Fitch's analytical approach. If you would like to submit a question in advance, please send an email to sfinvestor@fitchratings.com.

Please join the call promptly by dialing one of the below dial in options and entering the conference ID when prompted.

Participant Toll Free Dial-In Number: (877) 819-0869
Participant International Dial-In Number: (706) 902-0405
Conference ID: 17502854

The expected ratings are based on information provided by the issuer as of March 30, 2015. Fitch does not expect to rate the following certificates: the \$4,878,000 class E, the \$11,476,000 class F, the \$3,443,000 class G, or the \$6,886,850 class H certificates.

The certificates represent the beneficial ownership in the trust, primary assets of which are 144 loans secured by 3,160 mortgaged properties consisting of 2,609 single-family residential properties, 282 2-4 unit properties, 186 condominium properties, 60 townhomes, 22 multifamily properties and one mixed-use property, and having an aggregate principal balance of approximately \$229.5 million as of the cutoff date. The loans were contributed to the trust by B2R Finance L.P.

Fitch reviewed a comprehensive sample of the transaction's collateral, including cash flow analysis and asset summary reviews of 57.7% of the pool.

KEY RATING DRIVERS

New Asset Class: B2R 2015-1 represents the first multiborrower SFR transaction in the U.S. Although a number of single borrower SFR transactions have been issued since late 2013, Fitch highlights significant differences to those transactions in this report. Similar to single borrower SFR, sector and property level operating history are limited; however, historical investor loan performance provides a reasonable proxy for expected through-the-cycle performance.

Fitch Leverage: The pool's Fitch debt service coverage ratio (DSCR) and loan-to-value (LTV) are 1.02x and 114.9%, respectively, relative to 1.12x and 107.3% for average 2014 Freddie Mac 10-year K-Series transactions. The higher DSCR and LTV metrics reflect more conservative Fitch-stressed constant and capitalization rate assumptions of 10.53% and 9.72%, compared to average constants and capitalization rates of 8.79% and 8.30%, respectively for 2014 Freddie Mac transactions. However, Fitch debt yield for the B2R transaction of 8.78% compares favorably to average Fitch debt yield of 8.23% for 2014 Freddie Mac transactions.

Loan and Borrower Diversity: The pool consists of 144 loans secured by 3,160 properties; on average loans are cross-collateralized by 22 properties. The 10 largest loans represent 37.1% of the pool, which represents greater loan diversity than recent CMBS transactions and comparable diversity to 2014 Freddie Mac transactions.

RATING SENSITIVITIES

For this transaction, Fitch's net cash flow (NCF) was 13.1% below the issuer's NCF. Unanticipated further declines in property-level NCF could result in higher defaults and loss severity on defaulted loans, and could result in potential rating actions on the certificates. Fitch evaluated the sensitivity of the ratings assigned to B2R 2015-1 certificates and found that the transaction displays an average sensitivity to further declines in NCF. In a scenario in which NCF declined a further 20% from Fitch's NCF, a downgrade of the 'AAAsf' certificates to 'AA+sf' could result. In a more severe scenario, in which NCF declined a further 30% from Fitch's NCF, a downgrade of the 'AAAsf' certificates to 'A-sf' could result. The presale report includes a detailed explanation of additional stresses and sensitivities on pages 15 - 16.

The master servicer and special servicer will be Midland Loan Services, a Division of PNC Bank, National Association, rated 'CMS1' and 'CSS1', respectively, by Fitch.

The presale report is available at 'www.fitchratings.com' or by clicking on the link.