NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to three classes of notes issued by Sunnova Helios XI Issuer, LLC Solar Loan Backed Notes, Series 2023-A (“Sunnova 2023-A”), a $286.7 million residential solar loan ABS transaction.
The transaction is collateralized by approximately $491.3 million of residential solar loans. The $491.3 million residential solar loans in the statistical pool include PV Solar Loans under Sunnova’s Easy Own Plan Equipment Purchase (“Easy Own”) Agreements (72.7%), PV/ESS Solar Loans under its SunSafe Easy Own Plan Equipment Purchase (“SunSafe Easy Own”) Agreements (26.0%), and ESS Solar Loans under its SunSafe Agreements (1.3%). While Sunnova’s residential solar loan agreements offer 10- and 15-year loans, the majority of the pool (98.9%) has 25-year original terms.
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. ("SEI"), a public company. The Company started its operations in January 2013 and began providing solar energy services under its first operating Photovoltaic (“PV”) System in April 2013. The Company has served a total customer count of over 279,000 in more than 45 U.S. states and territories.
KBRA applied its General Global Rating Methodology for Asset-Backed Securities and Consumer Loan ABS Global Rating Methodology, as well as Global Structured Finance Counterparty Methodology and ESG Global Rating 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 review the operative agreements and legal opinions for the transaction prior to closing.
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- General Global Rating Methodology for Asset-Backed Securities
- Consumer Loan ABS Global Rating Methodology
- Global Structured Finance Counterparty Methodology
- ESG Global Rating 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.
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