Freddie Mac has engaged for the first time two rating agencies to provide conventional public ratings in conjunction with its “K” certificates as part of its first multifamily deal of this type in 2011.
A spokeswoman told this publication Freddie engaged Realpoint and Fitch to rate the offering of about $1 billion in structured pass-through certificates. The government-sponsored enterprise expects the offering to price next week.
Some investors require dual ratings before they can buy securities so providing them expands the potential investor base for K certificates.
David Brickman, vice president of commercial mortgage-backed securities capital markets, said in a press release he expects Freddie’s securitization activity to grow this year.
A network of dealers led by JP Morgan Securities LLC and Wells Fargo Securities LLC as co-lead managers and joint bookrunners are offering Freddie’s K-010 certificates, which are backed by 76 recently originated multifamily mortgages guaranteed by the government-sponsored enterprise.
Co-managers are Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Jefferies & Co. Inc. and Merrill Lynch Pierce Fenner & Smith Inc.
