KBRA Publishes RMBS Research: Hurricane Irma Potentially KBRA’s Largest RMBS Storm Exposure; Harvey Update

NEW YORK--(BUSINESS WIRE)-- Hurricane Irma, having already brought devastation to parts of the Caribbean, continues its path towards mainland U.S. and is projected to make landfall the morning of Sunday, September 10, 2017. Unfortunately, Irma is also expected to join Harvey, having only made landfall two weeks prior in Texas, as one of the most powerful storms to make landfall in the U.S. in over a decade. Where the catastrophic damage from Harvey was due to both the storm’s strength and its slow moving pace over a relatively confined area, the potential effects from Irma may accumulate quickly as the storm spreads its impact over a number of densely populated areas throughout the southeastern U.S. coast. While the storm’s true path is not yet known, KBRA estimates the following potential exposures:

• Hurricane Irma may rank as having the largest exposure area, covering roughly 6.8% out of $653 billion in collateral from properties located in the affected areas within KBRA’s rated RMBS portfolio.
• Florida, where the storm will likely make mainland landfall, is regularly one of top state concentrations in RMBS securitization, with an average concentration of 5.5%.
• The Core-Based Statistical Areas (CBSAs) covering Miami, Tampa, and Orlando are each located within the current FEMA declared disaster areas in FL and represent 1.58%, 0.85%, and 0.77% of total pool balance within KBRA’s rated RMBS portfolio.
• By comparison, the largest Harvey affected areas Houston-The Woodlands-Sugar Land and Austin-Round Rock CBSAs represented 2.03% and 1.10%, respectively.

In the publication, KBRA provides a full list of estimated exposures in the Major Disaster and Emergency declaration areas by current balance for every KBRA rated PLS transaction and original balance for every KBRA rated CRT transaction.

Additional detail is available in our full report.

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

View source version on businesswire.com: http://www.businesswire.com/news/home/20170911005659/en/

Analytical Contacts:

Kroll Bond Rating Agency

Ashish Sharda, 646-731-2415

Director

asharda@kbra.com

or

Jack Kahan, 646-731-2486

Managing Director

jkahan@kbra.com

or

Ryon Aguirre, 646-731-2382

Associate Director

raguirre@kbra.com

Source: Kroll Bond Rating Agency