KBRA Assigns Preliminary Ratings to Vivint Solar Financing V, LLC

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of notes from Vivint Solar Financing V, LLC. The transaction is secured by the equity interests of the managing members in the related Project Companies that in the aggregate, own a portfolio of 37,792 leases and PPAs associated with residential solar photovoltaic installations (“PV Systems”), as well as $20.7 million of hedged SREC contracts. Cash flow related to the portfolio is net of operations and maintenance expenses, administrative and insurance expenses and any distributions to a tax equity investor per the organizational documents for the respective Project Company.

The total aggregate discounted solar asset balance (“ADSAB”), consisting of the discounted payments of the leases, power purchase agreements (“PPA”), and hedged solar renewable energy credit agreements (“SRECs”) is approximately $494.3 million. The securitization share of the ADSAB is approximately $417.4 million. The portfolio consists of approximately 94.9% PPA agreements and 5.1% lease agreements by ADSAB of Host Customer Solar Assets and approximately 95.7% PPA agreements and 4.3% lease agreements by number. The original tenor of each agreement is 240 months and the weighted average remaining term of the agreements is 223.9 months. The weighted average FICO of the underlying customers of the PV Systems is 756.

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report available here.

Related Publications: (available at www.kbra.com)

• Vivint Solar Financing V, LLC Series 2018-1 Pre-Sale Report
• Global General Rating Methodology for Asset-Backed Securities

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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 recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and 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.

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