Monthly Overview
KBRA’s Solar Loan ABS Index’s credit performance deteriorated in November, as annualized net losses, early-stage (30-59 days), and late-stage (60-120 days) delinquencies all neared their highest levels since index inception. Net losses climbed 55 basis points (bps) month-over-month (MoM), while early- and late-stage delinquencies increased 5 bps and 11 bps, respectively. The performance deterioration was driven primarily by the 2023-24 vintages reaching their peak loss levels, as well as bankruptcies of issuers and installers due to ongoing financial strain in the solar sector and near-term macro headwinds—such as elevated borrowing costs and persistent inflation. KBRA expects this weakness to continue in the short term.
Since last November’s remittance, the index has weakened, with all key metrics rising year-over-year (YoY). Net losses are up 85 bps YoY, while early- and late-stage delinquencies have increased by 13 bps and 27 bps, respectively. We expect performance…