NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to two classes of notes issued by Sunnova Sol IV Issuer, LLC, Series 2022-1. As of March 1, 2022, the transaction was collateralized by a diversified pool of 34,673 leases, PPAs, and PPA-EZs (each a “Solar Service Agreement” or “SSA”), as well as performance-based incentive payments associated with residential solar photovoltaic installations (“PV Systems”) and battery units. The SSAs had an aggregate discounted solar asset balance (“ADSAB”) based on a discount rate of 5.0% of approximately $597.3 million. The securitization’s share of the ADSAB is approximately $492.6 million.
The three largest geographic concentrations include California, Puerto Rico, and Connecticut, which together represent approximately 61.5% of the number of PV Systems and approximately 64.0% of the ADSAB. The SSAs consist of approximately 9.8% Fixed Rate PPA, 13.3% Variable Rate PPA, 39.1% PPA-EZs, and 37.8% lease agreements, including storage leases, by ADSAB. The weighted average original term of the SSAs is 287 months and the weighted average remaining term of the SSAs was 276 months. The weighted average FICO of the underlying customers of the PV Systems is 744.
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