Kroll Bond Rating Agency Assigns Preliminary Ratings to SolarCity FTE Series 1, LLC, Series 2015-A
Kroll Bond Rating Agency assigns preliminary ratings to two classes of notes from SolarCity FTE Series 1, LLC, Series 2015-A, a residential distributed generation solar securitization.
This transaction is SolarCity Corporation’s fifth securitization. However, this is the Company’s inaugural solar securitization of its MyPower loan product. The transaction is secured by a pool of 11,583 solar loans made by SolarCity to install residential rooftop photovoltaic systems. The systems are geographically distributed across 13 states, with California, Colorado, and Arizona constituting about 94.8% of the collateral.
The aggregate discounted solar loan balance (“ADSLB”), consisting of the discounted interest and principal payments of the MyPower loans, is approximately $249.5 million. The original term of each loan is 30 years. As of the cut-off date the weighted average remaining term of the loans is 357 months and the weighted average FICO of the obligors is 733. The transaction benefits from credit enhancement in the form of overcollateralization, excess cash flow, an interest reserve account and an inverter replacement reserve account.