NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three categories of banknotes issued by GoodLeap Sustainable Home Solutions Trust 2021-3 (“GOOD 2021-3”), an asset-backed securitization guaranteed by a pool of consumer solar loans and home renovation loans.
The collateral pool consists of approximately $ 417.39 million in solar loans and home efficiency loans. As of the statistical deadline of May 6, 2021 (“statistical deadline”), solar loans and energy efficiency loans represent respectively 99.71% and 0.29% of the collateral pool. The preliminary ratings reflect the initial credit enhancement levels ranging from 25.09% for Class A Notes to 11.08% for Class C Notes.
GoodLeap, LLC (formerly Loanpal, LLC) (“GoodLeap” or the “Company”) was incorporated in California in 2003 to provide residential mortgages. In December 2017, GoodLeap launched its current solar loan origination platform, where it provides loans primarily to premium homeowners for the purpose of purchasing home improvements, including solar panel systems and batteries. In 2021, GoodLeap expanded its product offering to include home efficiency loans.
KBRA applied its general aggregate rating methodology for asset-backed securities, its aggregate consumer credit ABS rating methodology and its global structured finance counterparty methodology. Applying the methodologies, KBRA analyzed data from GoodLeap’s portfolio, the underlying collateral pool and the proposed capital structure under stressed cash flow assumptions. KBRA reviewed its operational review of GoodLeap, which was completed in November 2018, as well as periodic appeals with the Company. Operational agreements and legal opinions will be reviewed prior to closing.
Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.
A description of all substantially significant sources that were used to prepare the credit rating and information about the method (s) (including significant models and sensitivity analyzes of the relevant key rating assumptions, if any) used to determine the credit rating are available in the information disclosure form (s) located here.
Information on the meaning of each rating category can be located here.
Further information relating to this rating measure is available in the information disclosure form (s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures can be found at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.