KBRA Comments on Chapter 11 Filing of Solar Mosaic

NEW YORK--(BUSINESS WIRE)--Solar Mosaic LLC (Mosaic) has filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (Chapter 11) in the United States Bankruptcy Court for the Southern District of Texas. According to its press release dated June 6, 2025, Mosaic plans to maintain its loan servicing operation through the Chapter 11 process. In addition, Forbright Bank—an existing loan servicing customer of Mosaic and the administrative agent representing lenders in the Chapter 11 proceedings—has expressed its intention to leverage its financial strength to support Mosaic’s servicing operations.

According to the transaction documents of KBRA-rated solar loan ABS transactions for which Mosaic is the servicer, Mosaic’s bankruptcy constitutes a servicer termination event. However, the bankruptcy court may have broad authority over any contracts or agreements to which Mosaic is a party, which could prevent the trustee from appointing a successor servicer during the Chapter 11 process. Because situations involving a servicer bankruptcy present the potential for a servicing disruption, if during, or as a result of, the Chapter 11 proceedings, Mosaic is unable to continue to service the ABS trusts at a level consistent with its historic servicing standards, the potential exists for the ABS trusts to incur increased delinquencies and cash flow disruption. KBRA will continue to monitor the situation, and if any performance degradation should occur, KBRA will consider the magnitude of any such degradation in effectuating Watch Placements and/or rating actions across our rated universe of 18 Mosaic transactions, which include two unpublished transactions.

The following is a list of Mosaic’s published transactions rated by KBRA.

• Mosaic 2017-1
• Mosaic 2017-2
• Mosaic 2018-1
• Mosaic 2018-2-GS
• Mosaic 2019-1
• Mosaic 2019-2
• Mosaic 2020-1
• Mosaic 2020-2
• Mosaic 2021-1
• Mosaic 2021-2
• Mosaic 2021-3
• Mosaic 2022-1
• Mosaic 2022-2
• Mosaic 2022-3
• Mosaic 2023-1
• Mosaic 2024-2

Related Publication

• Mosaic Solar Loans LLC & Mosaic Solar Loan Trust Comprehensive Surveillance Report

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

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