KBRA awarded preliminary score to the GoodLeap Sustainable Home Solutions Trust 2021-3
The Kroll Bond Rating Agency (KBRA) conducts preliminary ratings on the three types of banknotes 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 guarantee pool includes approximately US $ 41,739 million in solar loans and housing efficiency loans. As of the statistical deadline of May 6, 2021 (“Statistical Deadline”), solar loans and loans for household energy efficiency represented 99.71% and 0.29% respectively of the mortgage portfolio. 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 (formerly 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 provides loans to major homeowners with good credit quality for the purchase of interior decoration, including solar panel systems and batteries. In 2021, GoodLeap expanded its product line to include housing efficiency loans.
KBRA 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. Applying these methods, KBRA analyzed data from GoodLeap’s portfolio, the underlying mortgage pool and the proposed capital structure under the assumption of pressurized cash flow. KBRA reviewed its operational review of GoodLeap in November 2018 and regular calls with the company. The transaction agreement and legal opinions will be reviewed prior to closing.
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More information on key credit considerations, considerations on factors that affect these credit ratings and sensitivity analysis of how they lead to upgrades or downgrades, and ESG factors (They are the main drivers of changes in credit ratings or rating outlook) can be found in the full assessment report cited above.
Provides a description of all material sources used to prepare the credit rating and the methodology used to determine the credit rating (including the sensitivity analysis of any major model and associated key rating assumptions, if applicable) in the information disclosure form located here.
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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 financial rating agency with the Financial Conduct Authority of the United Kingdom under the provisional registration system. In addition, KBRA is appointed by the Ontario Securities Commission as the designated rating agency for issuers of asset-backed securities and may submit a simplified prospectus or a shelf prospectus. KBRA is also recognized as a credit rating provider by the National Association of Insurance Commissioners.