NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of notes issued by Sunrun Demeter Issuer 2021-2. The transaction is collateralized by a diversified pool of 34,068 leases and PPAs associated with residential solar photovoltaic installations (“PV Systems”), some of which have energy storage equipment. The total aggregate discounted solar asset balance (“ADSAB”) based on a discount rate of 5.0% (PV5 ADSAB), consisting of the discounted payments of the leases and power purchase agreements (“PPA”) is approximately $631.9 million. The securitization share of the ADSAB is approximately $595.0 million.
The three largest geographic concentrations include California, Arizona, and Massachusetts, which together represent approximately 67.6% of the number of PV Systems and approximately 70.6% of the ADSAB. The portfolio consists of approximately 76.5% PPA agreements and 23.8% lease agreements by ADSAB of customer contracts and approximately 68.8% PPA agreements and 26.4% lease agreements by number. The weighted average original tenor of the power purchase agreements and leases is 279 months and the weighted average remaining term of the agreements is 247 months. The weighted average FICO of the underlying customers of the PV Systems is 747.
- Global General Rating Methodology for Asset-Backed Securities
- Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
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