KBRA Assigns Preliminary Ratings to Sunnova SOL VI Issuer, LLC, Series 2024-1
31 Jan 2024 | New York
KBRA assigns preliminary ratings to three classes of notes issued by Sunnova SOL VI Issuer, LLC, Series 2024-1. As of November 30, 2023, the transaction was collateralized by a diversified pool of 21,516 leases, Power Purchase Agreements (PPA), and PPA-EZs (each a “Solar Service Agreement” or SSA), as well as performance-based incentive payments associated with residential solar photovoltaic installations (PV Systems) and battery units. The SSAs had an aggregate discounted solar asset balance (ADSAB) based on a discount rate of 6.0% of approximately $406.4 million. The securitization’s share of the ADSAB is approximately $289.4 million.
The three largest geographic concentrations include Puerto Rico, California and Connecticut, which together represent approximately 50.0% of the number of PV Systems and approximately 57.4% of the ADSAB. The SSAs consist of approximately 53.4% lease agreements, including storage leases, 43.4% EZ Pay PPA , 2.9% Fixed Rate PPAs, and 0.4% Variable Rate PPA by ADSAB. As of the Cut-Off Date, the weighted average original and remaining term of the SSAs is 289 months and 281 months, respectively while the weighted average FICO of the underlying customers of the SSAs was 744.
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