KBRA Downgrades Ratings on Osprey Securitization I, LLC
29 May 2026 | New York
KBRA downgraded its ratings on the Class A Notes and Class B Notes from Osprey Securitization I, LLC, a commercial and industrial (C&I) solar ABS transaction secured by future project revenues from a portfolio of C&I photovoltaic (PV) systems. Concurrently, KBRA has removed both ratings from Watch Downgrade, where the Class A Notes were placed on April 30, 2026 and the Class B Notes on February 4, 2026 due to lower-than-expected production, which impacted available collections for the transaction. Available funds in the transaction have been approximately 80%-85% of the initial expected collections. The downgrades reflect expected continued production underperformance, as well as ongoing operational and financial concerns related to Distributed Solar Development, LLC (DSD or the Company), including significant liquidity pressure, substantial near-term debt maturities, and an elevated risk of early termination under the Asset Management Agreement. Interest on the Class B Notes is currently being deferred due to a Sequential Interest Amortization Event (DSCR below 1.00x), and timing of repayment of the deferred interest remains uncertain.
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