NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes issued by Sunnova Helios III Issuer, LLC, Solar Loan Backed Notes, Series 2019-A (‚ÄúSunnova 2019-A‚ÄĚ). This is a $167.63 million term ABS securitization collateralized by a pool of approximately $186.3 million residential solar loans.
The residential solar loans in the transaction include Sunnova Energy‚Äôs EZ Own and Easy Own loan agreements. All of Sunnova‚Äôs residential solar loans have a 25-year original term. As of the statistical cutoff date, the average current balance, weighted average remaining term, weighted average seasoning and weighted average current interest rate of loans in the initial loan pool is $30,061, 23.8 years (286 months), 14 months and 5.94%, respectively. The average borrower in the statistical pool is a homeowner with a weighted average original FICO score of 729.
Sunnova Energy Corporation (‚ÄúSunnova‚ÄĚ, or the ‚ÄúCompany‚ÄĚ) is a Houston, TX based independent solar power company that provides low-cost solar electricity to homeowners. The Company started its operations in January 2013 and began providing solar energy services under its first operating PV system in April 2013. As of December 31, 2018, the Company serves more than 63,000 customers in more than 20 U.S. states and territories.
KBRA applied its Global General Rating Methodology for Asset-Backed Securities and its Global Structured Finance Counterparty Methodology as part of its analysis of the transaction‚Äôs underlying collateral pool and the proposed capital structure. KBRA also conducted an operational assessment of Sunnova in March 2019, as well as a review of the transaction‚Äôs legal structure and transaction documents. KBRA will review the operative agreements and legal opinions for the transaction prior to closing.
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