KBRA assigns preliminary ratings to Loanpal Solar Loan 2021-2 Ltd. and Loanpal Solar Loan 2021-2 LLC
NEW YORK–(BUSINESS WIRE) – Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three categories of tickets issued by Loanpal Solar Loan 2021-2 Ltd. and Loanpal Solar Loan 2021-2 LLC (“LPSLT 2021-2”), an asset-backed securitization secured by a pool of residential solar loans.
The guarantee of the LPSLT 2021-2 agreement includes approximately $ 421.3 million in residential solar loans, as of the statistical deadline of February 11, 2020. Preliminary scores reflect initial credit enhancement levels ranging from 25.52% for category A tickets at 11.87% for category C tickets.
KBRA applied its General Global Rating Methodology for Asset Backed Securities, the ABS Global Consumer Credit Rating Methodology and the Global Structured Finance Counterparty Methodology. Applying the methodologies, KBRA analyzed data from Loanpal’s portfolio pool, the underlying collateral pool and the proposed capital structure under stressed cash flow assumptions. KBRA reviewed its operational review of Loanpal, which was carried out in November 2018, as well as the periodic calls with the Company. Operational agreements and legal opinions will be reviewed prior to closing.
Further information on key credit considerations, sensitivity analyzes that take into account the factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, ESG factors (where they are a key driver of change in credit rating or rating outlook) can be found in the comprehensive rating report mentioned above.
A description of all substantially significant sources that were used in preparing the credit rating and information on the methodology (s) (including significant models and sensitivity analyzes of key relevant rating assumptions, where applicable applicable) used to determine the credit rating are available in the information disclosure form (s) located here.
Information on the meaning of each rating category can be found here.
Additional information relating to this rating action is available in the information disclosure form (s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and information is available at: www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as CRA with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is designated as a designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.