KBRA Assigns Preliminary Ratings to Tesla 2017-2, LLC, Series 2017-2

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of notes from Tesla 2017-2, LLC, Series 2017-2. The notes are newly issued asset-backed securities backed by a portfolio of residential photovoltaic solar installations (PV Systems).

The securitization is backed by a diversified pool of 12,446 solar leases and power purchase agreements (PPAs) associated with residential rooftop photovoltaic systems. These systems are expected to be geographically distributed across 18 states, with the states of California, Maryland and Pennsylvania constituting approximately 70.0% of the collateral by aggregate discounted solar asset balance (ADSAB).

The ADSAB, consisting of the discounted payments of the leases and PPAs, is approximately $170.1 million. As of the cut-off date the weighted average remaining term of the PPAs and leases is 232 months and the weighted average FICO of the obligors is 745. The transaction benefits from credit enhancement in the form of overcollateralization, excess cash flow, an interest reserve account and an inverter replacement reserve account. In addition, from the closing date the transaction will be in “full turbo”, i.e., all proceeds remaining after the payment of third-party expenses and fees, interest on the Notes and scheduled amortization of the Notes will be applied sequentially to the Notes until the aggregate principal balance of the Notes is reduced to zero.

           
Class       Rating       Initial Principal Balance
Class A Notes       A- (sf)       $99,020,000
Class B Notes       BB (sf)       $31,895,000
 

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report available here.

Related Publications: (available at www.kbra.com)

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Cecil Smart, Jr., 646-731-2381
Senior Director
csmart@kbra.com
or
Andrew Lin, 646-731-2483
Associate Director
alin@kbra.com
or
Usman Khan, 646-731-2488
Associate
ukhan@kbra.com

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Cecil Smart, Jr., 646-731-2381
Senior Director
csmart@kbra.com
or
Andrew Lin, 646-731-2483
Associate Director
alin@kbra.com
or
Usman Khan, 646-731-2488
Associate
ukhan@kbra.com