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

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)


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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.