KBRA Releases Research – Sector Overview: Residential Solar Loan ABS

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases an overview of the residential solar loan ABS sector, which examines the growth of the sector, characteristics of residential solar loans, credit risk factors associated with residential solar loans, environmental, social, and governance (ESG) considerations, and KBRA’s rating activity in the sector.

The residential solar loan ABS sector has shown resilience through the COVID-19 pandemic. The performance of KBRA-rated transactions has been relatively stable with no negative rating actions taken to date. Residential solar loan ABS issuance in 2020 has exceeded the prior year with public and 144A securitization volume reaching $1.65 billion as of November 2020. The sector has increasingly attracted attention from ABS investors interested in asset classes with favorable ESG attributes.

Despite being a nascent asset class, residential solar loan ABS continues to evolve and be shaped by increasing industry competition, creating new products, and financing options. The landscape will also inevitably be impacted by government actions, shifting social trends regarding energy consumption, and the potential financial benefits of renewable energy.

Click here to view the report.

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 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 and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.