KBRA Assigns Preliminary Ratings to Mosaic Solar Loan Trust 2022-1

KBRA assigns preliminary ratings to four classes of notes issued by Mosaic Solar Loan Trust 2022-1, an asset-backed securitization collateralized by a pool of residential solar loans.

The collateral pool of Mosaic 2022-1 will include approximately $382.73 million of residential solar loans, which comprises of approximately $300.0 million in loans at closing and $150.0 million in additional prefunded solar loans.

The preliminary ratings reflect the initial credit enhancement levels ranging from 46.59% for the Class A notes to 10.79% for the Class D notes.

Solar Mosaic LLC is a California-based specialty finance company focused on originating and servicing consumer loans used for the purchase of residential solar systems. Mosaic was founded as a limited liability company in Colorado in 2010, converted to a Delaware corporation in 2011 and converted to a Delaware limited liability company in 2021.

Mosaic disburses funds directly to installers (or their designees), equal to the system cost minus installer discounts. This discount depends on the loan term and dealer agreements and is generally netted out proportionately with each disbursement to the installer/dealer.

Mosaic directly originates loans in 48 states and the District of Columbia through its state lending licenses where required, and across all 50 states and the District of Columbia through lending partnerships with financial institution.

KBRA applied its General Global Rating Methodology for Asset-Backed Securities as well as its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology.

In applying the methodologies, KBRA analyzed Mosaic’s portfolio pool data, underlying collateral pool and proposed capital structure under stressed cash flow assumptions. KBRA considered its operational review of Mosaic, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.