Monthly Overview
February’s monthly remittance reports showed a second consecutive month-over-month (MoM) deterioration in credit performance for the aggregated ABS pool. Net losses in KBRA’s Solar Loan ABS index increased 46 basis points (bps) MoM to 3.06%, reaching another all-time high since the index's inception (see Figure 1 and Figure 5). Late- (60-120 days) and early-stage (30-59 days) delinquency rates were more stable this month, rising 3 bps and dropping 3 bps, respectively. However, both metrics are elevated compared to all previous index years (see Figure 6 and Figure 7).
On a year-over-year (YoY) basis, the index performance has also shown deteriorated credit performance, with net losses up 100 bps as well as early- and late-stage delinquencies up 26 bps and 29 bps, respectively (see Figure 1 and Figure 2).
Current index values, as well as MoM and YoY changes, are shown in the following table.
The rise in MoM annualized net losses can be attributed to continued poor…