KBRA Assigns Preliminary Ratings to Sunnova Helios III Issuer, LLC, Solar Loan Backed Notes, Series 2019-A

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 (“Sunnova 2019-A”). 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’s
EZ Own and Easy Own loan agreements. All of Sunnova’s 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 (“Sunnova”, or the “Company”) 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’s 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’s legal structure and transaction documents. KBRA will
review the operative agreements and legal opinions for the transaction
prior to closing.


To access ratings, reports and disclosures, click here.




 


 




 


 




Class


 


 


Preliminary Rating


 


 


Principal Balance


A


 


 


A (sf)


 


 


$139,692,000


B


 


 


BBB (sf)


 


 


$14,900,000


C


 


 


BB (sf)


 


 


$13,038,000














 


Related Publications: (available at www.kbra.com)


Global
General Rating Methodology for Asset-Backed Securities


Global
Structured Finance Counterparty Methodology


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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. KBRA is also 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.


Contacts

Analytical Contacts:

Melvin Zhou, CFA, Director(646) 731-2412mzhou@kbra.com

Pritam Patel, Senior Analyst(646) 731-3374ppatel@kbra.com

Eric Neglia, Managing Director(646) 731-2412eneglia@kbra.com

Usman Khan, Associate Director(646) 731-2488ukhan@kbra.com