KBRA Assigns Preliminary Ratings to Sunnova Helios V Issuer, LLC, Solar Loan Backed Notes, Series 2021-A

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of notes issued by Sunnova Helios V Issuer, LLC, Solar Loan Backed Notes, Series 2021-A (“Sunnova 2021-A”), a $188.641 million residential solar loan ABS transaction.

The transaction will be collateralized by approximately $208.4 million of residential solar loans, of which approximately 13% will be prefunded at closing. The preliminary ratings reflect the initial credit enhancement level of 29.00% for the Class A notes and 10.50% for the Class B notes.

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., a public company. The Company started its operations in January 2013 and began providing solar energy services under its first operating Photovoltaic system in April 2013. As of September 30, 2020, the Company served a total customer count of over 98,000 in more than 20 U.S. states and territories.

KBRA applied its Global General Rating Methodology for Asset-Backed Securities and Global Structured Finance Counterparty 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 also review the operative agreements and legal opinions for the transaction prior to closing.

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Related Publications

• Global General Rating Methodology for Asset-Backed Securities
• Global Consumer Loan ABS Rating Methodology
• Global Structured Finance Counterparty 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 U.S. Information Disclosure Form 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 U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. 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.