KBRA Assigns Preliminary Ratings to Sunnova Helios, Solar Loan Backed Notes

KBRA assigns preliminary ratings to three classes of notes issued by Sunnova Helios VII Issuer, LLC, Solar Loan Backed Notes, Series 2022-A, a $297.9 million residential solar loan ABS transaction.

The transaction will be collateralized by approximately $425.6 million of residential solar loans, of which approximately $121.6 million will be funded at closing.

Sunnova Energy Corporation is a Houston, TX based independent solar power company that provides low-cost solar electricity to homeowners, and a wholly owned subsidiary of Sunnova Energy International Inc. (SEI), a public company.

The Company started its operations in January 2013 and began providing solar energy services under its first operating Photovoltaic (PV) System in April 2013. The Company has served a total customer count of over 176,000 in more than 25 U.S. states and territories.

KBRA applied its General Global Rating Methodology for Asset-Backed Securities and Consumer Loan ABS Global Rating Methodology, as well as Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology, as part of its analysis of the transaction’s underlying collateral pool and the proposed capital structure.

KBRA also conducted an operational assessment of Sunnova, as well as a review of the transaction’s legal structure and transaction documents. KBRA will also review the operative agreements and legal opinions for the transaction prior to closing.