Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to one class of notes from Sunnova Helios II Issuer, LLC, Series 2018-1, a residential distributed generation solar securitization.
This transaction is Sunnova Energy Corporations (Sunnova or the Company) second securitization. The transaction is backed by a diversified pool of 14,777 leases, power purchase agreements (PPA), and EZ Pay PPAs (each a Solar Service Agreement or SSA), and 43 hedged solar renewable energy certificate (SREC) contracts, associated with residential solar photovoltaic installations (PV Systems).
The SSAs have an aggregate discounted solar asset balance (ADSAB) of approximately $283.2 million while the SREC contracts have an ADSAB of approximately $25.8 million, for a total ADSAB of approximately $309.0 million. The PV Systems are expected to be geographically distributed across 17 states, Guam, Puerto Rico and Northern Mariana Islands, with New Jersey, California, and Guam constituting approximately 65.9% of the collateral by count and approximately 61.6% of the total ADSAB. Approximately 98.5% of the solar service agreements have an original term of 25 years. The SSAs consist of approximately 15.7% PPAs, 40.1% EZ Pay PPAs, and 44.2% lease agreements by SSA ADSAB and approximately 17.5% PPA, 40.8% EZ Pay PPA, and 41.7% lease agreements by number. As of September 30, 2018, the weighted average remaining term of the SSAs is 273 months and the weighted average FICO of the underlying customers of the PV Systems is 735.
|Class||Rating||Initial Note Amount|
|A Notes||A- (sf)||$202,000,000|
To access ratings, reports and disclosures, click here.
Related Publications: (available at www.kbra.com)
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- Sunnova Helios II Issuer, LLC, Solar Asset Backed Notes, Series 2018-1 Pre-Sale Report
- Global General Rating Methodology for Asset-Backed Securities
About KBRA and KBRA Europe
KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
Chen, Senior Director
Smart, Jr., Managing Director
Shen, CFA, Associate