KBRA Assigns Preliminary Ratings to Luminace ABS-2022 Issuer, LLC
KBRA assigns preliminary ratings to two classes of notes issued by Luminace ABS-2022 Issuer, LLC. The Notes are secured by forward project revenues from a portfolio of 376 commercial and industrial photovoltaic systems ("PV Systems") owned by 23 project companies, each of which is a direct or indirect, wholly-owned subsidiary of the Issuer. The PV Systems are grouped into 74 different projects, 46 of which are subject to a Master Lease Agreement ("MLA") between subsidiaries of the Issuer and Sunbeam LeaseCo, LLC (the "Lessee"), an unrelated third party. The aggregate discounted solar asset balance ("ADSAB") based on a discount rate of 5.0% (PV5 ADSAB), consisting of the discounted projected payments under the power purchase agreements, post-PPA merchant revenue, and contractual sale of solar renewable energy credits ("SREC"), is approximately $449.5 million.
The three largest geographic concentrations by ADSAB include California, Maryland, and Arizona, which together represent approximately 87.7% of the number of PV sites and approximately 66.0% of the ADSAB. The average system size is 676.3 kW DC. The weighted average original tenor of the leases is 275 months, while the weighted average remaining tenor is 215 months.
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.
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 pursuant to the Temporary Registration Regime. 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.
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