KBRA Assigns Rating to GoodLeap Sustainable Home Solutions Trust 2023-3

NEW YORK, August 30, 2023–(BUSINESS WIRE)–KBRA assigns a rating to one class of notes totaling $265.124 million issued by GoodLeap Sustainable Home Solutions Trust 2023-3 (“GOOD 2023-3”), an asset-backed securitization collateralized by a pool of consumer solar loans and home improvement loans.

The collateral pool consists of approximately $470.7 million Sustainable Home Improvement Loans. As of the June 30, 2023 statistical cut-off date, solar loans and home improvement loans make up 90.1% and 9.9% of the collateral pool, respectively. The rating reflects the initial credit enhancement level, as a percentage of 95% of the adjusted pool balance, of 26.95% for the Class A Notes.

GoodLeap, LLC (formally known as 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 originates loans to mostly prime credit quality homeowners for the purpose of purchasing 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 Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In applying the methodologies, KBRA analyzed GoodLeap’s portfolio pool data, underlying collateral pool and proposed capital structure under stressed cash flow assumptions. KBRA considered its operational review of GoodLeap, as well as periodic update calls with the Company. Operative agreements and legal opinions were reviewed prior to closing.

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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.

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Contacts

Analytical Contacts

Michael Polvere, Associate Director (Lead Analyst)
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Michael Espino, Associate Director
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Perry Fried, Analyst
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Melvin Zhou, Managing Director (Rating Committee Chair)
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Business Development Contact

Arielle Smelkinson, Senior Director
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