NEW YORK–(BUSINESS WIRE) – The Kroll Bond Rating Agency (KBRA) issues preliminary ratings for four bond classes of the Mosaic Solar Loan Trust 2021-2 (“Mosaic 2021-2”), an asset-backed securitization backed by a pool of residential solar loans.
Mosaic’s 2021-2 collateral pool will include approximately $ 218.2 million in residential solar loans, including approximately $ 120.0 million in closing credits and $ 98.2 million in additional pre-funded solar loans. The preliminary ratings reflect the initial credit enhancement levels from 51.97% for the Class A bonds to 12.14% for the Class D bonds.
Solar Mosaic, Inc. (“Mosaic” or the “Company”) is a California-based specialty finance company focused on providing and servicing consumer credit for the purchase of residential solar panels. Mosaic was founded in 2011 and began granting loans for private solar systems in June 2014. Through its partnerships with more than 700 active approved installers / dealers of solar systems, Mosaic provides loans to predominantly homeowners with first-class credit ratings. The company lends as needed directly in 48 states and the District of Columbia through its state loan licenses and in all 50 states and the District of Columbia through credit partnerships with financial institutions.
KBRA has applied its Global General Rating Methodology for Asset-Backed Securities, Global Consumer Loan ABS Rating Methodology and its Global Structured Finance Counterparty Methodology as part of its analysis of the collateral pool underlying the transaction and the proposed capital structure. KBRA also carried out an operational assessment of Mosaic and a review of the legal structure and transactional documents of the transaction. KBRA will also review the operational agreements and legal opinions for the transaction prior to closing.
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Learn more about key credit considerations, sensitivity research that takes into account what factors may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (if they are a material factor in changing creditworthiness or the rating outlook). ) can be found in the full assessment report above.
A description of all material material sources used in establishing the credit rating and information on the methodology (s) (including any material models and sensitivity analyzes of the relevant material rating assumptions, if any) that were used in determining the credit rating is available on the information disclosure form (s) located here.
Information on the meaning of the individual assessment categories can be found here.
Further information on this rating measure can be found in the information disclosure forms mentioned above. Further information on KBRA guidelines, methods, rating scales and indications is available at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered as an NRSRO with the Securities and Exchange Commission. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered with the UK Financial Conduct Authority as a CRA under the temporary registration system. In addition, KBRA has been named by the Ontario Securities Commission as the designated rating organization for issuers of asset-backed securities for the submission of a short prospectus or shelf prospectus. KBRA is also recognized as a credit rating provider by the National Association of Insurance Commissioners.