KBRA Assigns Preliminary Ratings to Sunnova SOL VI Issuer, LLC, Series 2024-1

KBRA assigns preliminary ratings to three classes of notes issued by Sunnova SOL VI Issuer, LLC, Series 2024-1. As of November 30, 2023, the transaction was collateralized by a diversified pool of 21,516 leases, Power Purchase Agreements (PPA), and PPA-EZs (each a “Solar Service Agreement” or SSA), as well as performance-based incentive payments associated with residential solar photovoltaic installations (PV Systems) and battery units. The SSAs had an aggregate discounted solar asset balance (ADSAB) based on a discount rate of 6.0% of approximately $406.4 million. The securitization’s share of the ADSAB is approximately $289.4 million.

The three largest geographic concentrations include Puerto Rico, California and Connecticut, which together represent approximately 50.0% of the number of PV Systems and approximately 57.4% of the ADSAB. The SSAs consist of approximately 53.4% lease agreements, including storage leases, 43.4% EZ Pay PPA , 2.9% Fixed Rate PPAs, and 0.4% Variable Rate PPA by ADSAB. As of the Cut-Off Date, the weighted average original and remaining term of the SSAs is 289 months and 281 months, respectively while the weighted average FICO of the underlying customers of the SSAs was 744.

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Methodologies

• ABS: General Global Rating Methodology for Asset Backed Securities
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an 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 UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003117

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