KBRA Assigns Preliminary Ratings to Sunnova Hestia II Issuer, LLC Solar Loan Backed Notes, Series 2024-GRID1
2024年5月17日 - 3:42AM
ビジネスワイヤ(英語)
KBRA assigns preliminary ratings to two classes of notes issued
by Sunnova Hestia II Issuer, LLC Solar Loan Backed Notes, Series
2024-GRID1, a $168.9 million residential solar loan ABS
transaction.
This transaction represents the second securitization under the
Hestia program, which contains a partial loan guarantee provided by
the U.S. Department of Energy. Projects funded under Project Hestia
are, in part, to provide loans for clean energy systems to
disadvantaged communities in the US and Puerto Rico. The project is
required to provide at least 20% of its loans to customers with
credit scores of 680 or less, and at least 10% and a target minimum
of 20% to homeowners in Puerto Rico.
The Guaranteed Loan Borrower is collateralized by approximately
$260.8 million of residential solar loans approximately $23 million
will be prefunded at closing. The $237.8 million residential solar
loans in the statistical pool includes PV Solar Loans under
Sunnova’s Easy Own Plan Equipment Purchase (“Easy Own”) Agreements
(59.8% as of the statistical cutoff date), PV/BESS Solar Loans
under its SunSafe Easy Own Plan Equipment Purchase (“SunSafe Easy
Own”) Agreements (31.8%), and BESS Solar Loans under its SunSafe
Agreements (8.4%). While Sunnova’s residential solar loan
agreements offer 10- and 15-year loans, the majority of the
aggregate initial pool balance (97.7%) has 25-year original
terms.
Sunnova Energy Corporation (“Sunnova”, or the “Company”) is a
Houston, TX based independent solar power company that provides
low-cost solar electricity to homeowners, and a wholly owned
subsidiary of Sunnova Energy International Inc. ("SEI"), a public
company. The Company started its operations in January 2013 and
began providing solar energy services under its first operating
Photovoltaic (“PV”) System in April 2013. Sunnova originates loans
to mostly prime credit quality homeowners through its partnerships
with local dealers. As of March 31, 2024, the Company has served a
total customer count of over 438,000 in more than 50 U.S. states
and territories. Sunnova provides its services through long-term
residential solar service agreements (”SSA") in the following
formats: i) lease agreements, ii) power purchase agreements
(“PPA”), and iii) loan agreements. The three types of loan
agreements are Easy Own Plan Equipment Purchase Agreements ("PV
Solar Loans"), SunSafe Easy Own Plan Equipment Purchase Agreements
("PV/BESS Solar Loans"), and SunSafe Agreements ("BESS Solar
Loan"). The collateral included in this securitization includes
only loan agreements. The Company originates loans to mostly prime
credit quality homeowners through its partnerships with local
dealers. The Company has also issued 10 ABS securitizations
collateralized by secured residential solar loans and seven
transactions collateralized by lease and PPA products.
KBRA applied its General Global Rating Methodology for
Asset-Backed Securities and Consumer Loan ABS Global Rating
Methodology, as well as Global Structured Finance Counterparty
Methodology and ESG Global Rating Methodology, as part of its
analysis of the transaction’s underlying collateral pool and the
proposed capital structure. KBRA also conducted an operational
assessment of Sunnova, as well as a review of the transaction’s
legal structure and transaction documents. KBRA will review the
operative agreements and legal opinions for the transaction prior
to closing.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: General Global Rating Methodology for Asset Backed
Securities
- ABS: Consumer Loan ABS Global Rating Methodology
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1004305
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Analytical Contacts
Melvin Zhou, Managing Director (Lead Analyst) +1 646-731-2412
melvin.zhou@kbra.com
Jacob Paulose, Associate Director +1 646-731-1269
jacob.paulose@kbra.com
Brockton Bowers, Senior Analyst +1 646-731-2418
brockton.bowers@kbra.com
Eric Neglia, Head of Commercial and Consumer ABS (Rating
Committee Chair) +1 646-731-2456 eric.neglia@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com