NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by Loanpal Solar Loan 2021-2 Ltd. and Loanpal Solar Loan 2021-2 LLC (“LPSLT 2021-2”), an asset-backed securitization collateralized by a pool of residential solar loans.
The collateral in the LPSLT 2021-2 deal includes approximately $421.3 million of residential solar loans, as of the February 11, 2020 statistical cut-off date. The preliminary ratings reflect the initial credit enhancement levels ranging from 25.52% for the Class A Notes to 11.87% for the Class C Notes.
KBRA applied its General Global Rating Methodology for Asset-Backed Securities, Consumer Loan ABS Global Rating Methodology and Global Structured Finance Counterparty Methodology. In applying the methodologies, KBRA analyzed Loanpal’s portfolio pool data, underlying collateral pool and proposed capital structure under stressed cash flow assumptions. KBRA considered its operational review of Loanpal, which was conducted in November 2018 as well as periodic calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
- General Global Rating Methodology for Asset-Backed Securities
- Consumer Loan ABS Global Rating Methodology
- Global Structured Finance Counterparty Methodology
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.
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 pursuant to the Temporary Registration Regime. 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.