• Tue. Nov 29th, 2022

KBRA Assigns Preliminary Ratings to GoodLeap Sustainable Home Solutions Trust 2022-4

ByElla E. Kidwell

Oct 6, 2022

NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to three categories of banknotes issued by GoodLeap Sustainable Home Solutions Trust 2022-4 (“GOOD 2022-4”), an asset-backed securitization secured by a pool of consumer solar loans and home improvement loans.

The collateral pool consists of approximately $390.2 million in sustainable home improvement loans. As of the statistical cut-off date of September 22, 2022, solar loans and home efficiency loans represent 99.6% and 0.4% of the collateral pool respectively. Preliminary ratings reflect initial credit enhancement levels ranging from 24.08% for Class A Notes to 13.96% for Class C Notes.

GoodLeap, LLC (formerly Loanpal, LLC) (“GoodLeap” or the “Company”) was incorporated in California in 2003 to provide residential mortgage loans. In December 2017, GoodLeap launched its current solar loan origination platform, where it provides loans to mostly prime homeowners to purchase home improvements, including solar panel systems and batteries. In 2021, GoodLeap expanded its product offering to include Home Efficiency Loans.

KBRA applied its general global rating methodology for asset-backed securities as well as its global ABS rating methodology for consumer loans, its global structured finance counterparty methodology and its global ESG rating methodology. Applying the methodologies, KBRA analyzed data from GoodLeap’s portfolio pool, underlying collateral pool and proposed capital structure under stressed cash flow assumptions. KBRA reviewed its operational review of GoodLeap, as well as periodic update calls with the company. Operational agreements and legal opinions will be reviewed prior to closing.

Click here to see the report. To access relevant notes and documents, click here.

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Disclosures

Further information on key credit considerations, sensitivity analyzes which look at factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a factor key to the change in credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of key relevant rating assumptions, if any) used to determine credit rating are available in the Information Disclosure Form(s) located here.

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

Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. Additionally, KBRA is designated as the Designated Rating Agency 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.