KBRA Assigns Preliminary Ratings to SunStrong Issuer 2025-A, LLC

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to four classes of notes issued by SunStrong Issuer 2025-A, LLC ("SunStrong 2025-A"), a $253.841 million asset-backed securitization collateralized by a pool of residential solar loans originated via the SunPower Corporation platform. The solar loans were subsequently sold to SunStrong Capital Holdings, LLC ("SunStrong Capital") and are currently managed by SunStrong Management, LLC ("SunStrong Management"), a separately capitalized but affiliated entity to SunStrong Capital. Both entities are owned by Hannon Armstrong Sustainable Infrastructure Capital Inc and certain funds managed by GoodFinch Management, LLC. While SunStrong Capital was previously majority owned by SunPower Corporation, there is currently no affiliation between SunPower Corporation and SunStrong Capital nor SunStrong Management.

The collateral pool of SunStrong 2025-A will include approximately $349.4 million of solar loans with a weighted average FICO of 757, a weighted average seasoning of 19 months, and a weighted average interest rate of 3.56% as of the January 31, 2025 cut-off date. The preliminary ratings reflect the initial credit enhancement levels ranging from 52.33% for the Class A notes to 28.08% for the Class D notes.

KBRA applied its General Global Rating methodology for Asset-Backed Securities as well as its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In applying the methodologies, KBRA analyzed SunPower’s portfolio pool data and the underlying collateral pools and analyzed the capital structure using stressed cash flow assumptions. KBRA considered its operational reviews, as well as due diligence calls with SunStrong Management and Launch. Operative agreements and legal opinions will be reviewed prior to closing.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• ABS: General Global Rating Methodology for Asset Backed Securities
• ABS: Consumer Loan ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating 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 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.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA 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. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1009411