The Kroll Bond Rating Agency (KBRA) conducts preliminary ratings on the three types of notes issued by the following institutions GoodLeap Sustainable Home Solutions Trust 2021-3 (“GOOD 2021-3”), an asset-backed securitization, is secured by a series of consumer solar loans and home improvement loans.
The collateral pool includes approximately US$41739 million in solar loans and home efficiency loans. As of the statistical deadline of May 6, 2021 (“Statistical Deadline”), solar loans and household efficiency loans accounted for 99.71% and 0.29% of the mortgage pool, respectively. The preliminary rating reflects the initial credit enhancement level, ranging from 25.09% for Class A notes to 11.08% for Class C notes.
GoodLeap, LLC (formally known as Loanpal, LLC) (“GoodLeap” or “Company”) was incorporated in California in 2003 to provide residential mortgages. In December 2017, GoodLeap launched the current solar loan issuance platform, which mainly issues loans to major homeowners with good credit quality for the purchase of home decoration, including solar panel systems and batteries. In 2021, GoodLeap expanded its product range to include Home Efficiency Loans.
KBRA has applied the universal global rating method for asset-backed securities, the ABS global rating method for consumer loans, and the global structured financial counterparty method. In applying these methods, KBRA analyzed GoodLeap’s portfolio pool data, underlying mortgage pool, and proposed capital structure under the assumption of pressure cash flow. KBRA considered its GoodLeap operational review in November 2018 and regular calls with the company. The transaction agreement and legal opinions will be reviewed before closing.
More information on key credit considerations, considerations of which factors affect these credit ratings and sensitivity analysis of how they lead to upgrades or downgrades, and ESG factors (They are the key drivers behind changes in credit ratings or rating outlook) can be found in the full rating report cited above.
Provides a description of all the material sources used to prepare the credit rating and the methodology used to determine the credit rating (including sensitivity analysis of any major models and related key rating assumptions, if applicable) in the information disclosure form located Here.
Information about the meaning of each rating category can be found Here.
Further disclosures related to this rating action can be obtained in the above information disclosure form.For more information on KBRA policies, methods, rating scales and disclosures, please visit www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the Financial Conduct Authority of the United Kingdom under the provisional registration system. In addition, KBRA is designated by the Ontario Securities Commission as the designated rating agency for asset-backed securities issuers, and can submit a short form prospectus or shelf prospectus. KBRA is also recognized as a credit rating provider by the National Association of Insurance Commissioners.