KBRA Assigns Ratings to SunStrong Issuer 2025-A, LLC
28 May 2025 | New York
KBRA assigns 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 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 were reviewed prior to closing.
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