Morningstar Credit Ratings today assigned its "MOR RV1" residential vendor ranking to Carrington Property Services (CPS) as a residential single-family rental property manager and as a residential REO asset manager. The forecast for the rankings is Stable.
Morningstar noted in a release that it believes Carrington's "extensive track record in the single-family rental property management field should position the company strongly as a master, oversight, and standby residential property manager as the volume of single-family rental securitizations increases in the next 18 months."
The rankings are based on a few factors, including performance history, technology, and Carrington's business model. The rating agency noted that Carrington's performance history has a national footprint as a residential property manager, overseeing more than 35,000 properties for multiple clients since 2007. Additionally, Carrington's proprietary technology helped boost the property service company's rating.
Furthermore, Carrington's infrastructure and human resources were cited as bright spots, which helped garner the highest ranking.
"I'm so proud of Morningstar's assessment of Carrington's capabilities, and of our team for the hard work and dedication they put in every day to maximize the value of our clients' single family residential assets," said Kevin Cloyd, president of Carrington Property Services.
Cloyd continued, "Having earned the highest rating a residential vendor can be given by Morningstar for both Residential Single Family Rental Property Management and REO Asset Management provides significant validation for all Carrington does to provide exceptional service to real estate investors and financial institutions."
As a residential REO asset manager, Carrington scored top marks as well. Morningstar noted the company's 21,000 managed REO assets, as well as their sales of REO properties that total between $500 million and $1 billion each year.
"A continuous scoring and feedback loop between management and vendors as well as extensive performance data collection and reporting to management provides CPS with the ability to monitor compliance with client-specific key performance indicators," Morningstar said.
The rating agency also lauded Carrington for their organizational structure, effective training programs, comprehensive policies and procedures, robust technology environment, risk management, tenured management team, and disaster recovery and business continuity.
"Being able to produce superior results on a national level takes both operational expertise and a refined, metric-oriented focus—something Carrington has demonstrated for years," Cloyd said.