KBRA Assigns Preliminary Ratings to FortiFi 2024-1, Series 2024-1
24 Jun 2024 | New York
KBRA assigns preliminary ratings to three classes of notes issued by FortiFi 2024-1, Series 2024 (FortiFi 2024-1). The notes are newly issued asset-backed securities backed by a portfolio of Property Assessed Clean Energy (PACE) Bonds.
The Class A Notes, Class B Notes and Class C Notes (together, the Notes) are secured by a portfolio of PACE bonds (PACE Bonds) acquired by FortiFi 2024-1 (the Issuer) at closing (the PACE Bond Portfolio). The PACE Bond Portfolio consists of limited obligation improvement bonds issued or to be issued by California Statewide Communities Development Authority (CSCDA), via the CSCDA Open PACE Program, and by Florida PACE Funding Agency (FPFA), via the FPFA PACE Program (together with CSCDA Open PACE Program, the PACE Programs). The PACE Bonds are secured by 4,874 PACE assessments levied against 4,861 residential properties, which represent 99.1% of the transaction collateral by balance and 13 commercial properties (0.9%) in 28 Florida counties and 38 California counties. The transaction benefits from credit enhancement in the form of excess spread, a liquidity reserve account and, in the case of the Class A Notes, subordination.
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