DBRS Takes Rating Actions on Notes Issued by FirstKey Master Funding 2017-R1 Ltd.

DBRS, Inc. (DBRS) took the following ratings actions on the Class A2 Notes, Class A3 Notes, Class A4 Notes and Class A5 US Combination Notes (collectively, the Senior Securities) as well as on the Class M1 Notes, Class M2 Notes, Class M3 Notes, Class A6 US Combination Notes, Class A7 US Combination Notes and Class M4 Combination Certificates (collectively, the Mezzanine Securities) of FirstKey Master Funding 2017-R1 Ltd. (the Issuer):

-- Class A2 Notes (33767LAB3) discontinued to reflect full repayment
-- Class A3 Notes (33767LAC1) confirmed at AAA (sf)
-- Class A4 Notes (33767LAD9) upgraded to AA (high) (sf) from AA (sf)
-- Class M1 Notes (33767LAE7) upgraded to AA (sf) from A (sf)
-- Class M2 Notes (33767LAF4) upgraded to AA (low) (sf) from BBB (sf)
-- Class M3 Notes (33767LAG2) confirmed at BB (sf)
-- Class A5 US Combination Notes (33767LAN7) discontinued to reflect full repayment
-- Class A6 US Combination Notes (33767LAP2) upgraded to AA (sf) from A (sf)
-- Class A7 US Combination Notes (33767LAR8) upgraded to AA (sf) from A (sf)
-- Class M4 Combination Certificates (33767LAQ0) confirmed at BB (sf)

These rating actions are based on the Indenture, Deed of Covenant and Fiscal Agency and Collateral Security Agreement dated as of March 31, 2017, among FirstKey Master Funding 2017-R1 Ltd. as Issuer; FirstKey Master Funding, LLC as Depositor; and U.S. Bank National Association (rated AA (high) with a Stable trend by DBRS) as Indenture Trustee, Fiscal and Paying Agent, Collateral Agent and Securities Intermediary.

The ratings on the Senior Securities, Class M1 Notes, Class M2 Notes, Class A6 US Combination Notes and Class A7 US Combination Notes address the timely payment of interest and the ultimate payment of principal on or before the Legal Maturity Date (as defined in the Indenture and the Fiscal Agency and Collateral Security Agreement). The ratings on the Class M3 Notes and Class M4 Combination Notes address the ultimate payment of interest and the ultimate payment of principal on or before the Legal Maturity Date (as defined in the Indenture and the Fiscal Agency and Collateral Security Agreement).

The Issuer’s securities are collateralized by Class A-1b and the Class A-1v of West Coast Funding I, Ltd., which is itself collateralized by a pool of Prime and Alt-A residential mortgage-backed securities.

Under the Indenture and the Fiscal Agency and Collateral Security Agreement, the date on which an Indenture Event of Default has occurred and is continuing, the US Notes have been accelerated pursuant to the terms of the Indenture or a Fiscal Agreement Event of Default has occurred and is continuing and the Cayman Securities have been accelerated pursuant to the terms of the Fiscal Agency and Collateral Security Agreement, all amounts in the Note Payment Account under the Indenture and the Securities Payment Account under the Fiscal Agency and Collateral Security Agreement will be paid first to the Issuing Entity, the Indenture Trustee, the Fiscal and Paying Agent, the Collateral Agent, the Securities Intermediary, the Administrator and the Cayman Administrator, pro rata, in respect of any unreimbursed Extraordinary Expenses owing to such entity (for this purpose, determined and reimbursable without giving effect to application of the Expense Cap). Thus, upon that occurrence, the ratings assigned to the securities may be subject to downgrades as a result of these additional uncapped expenses.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is Rating Structured Finance CDO Restructurings, which can be found on dbrs.com under Methodologies.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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