KBRA assigns preliminary ratings to two classes of notes issued by Sunnova Sol IV Issuer, LLC, Series 2022-1. As of March 1, 2022, the transaction was collateralized by a diversified pool of 34,673 leases, PPAs, 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 5.0% of approximately $597.3 million. The securitization’s share of the ADSAB is approximately $492.6 million.

The three largest geographic concentrations include California, Puerto Rico, and Connecticut, which together represent approximately 61.5% of the number of PV Systems and approximately 64.0% of the ADSAB. The SSAs consist of approximately 9.8% Fixed Rate PPA, 13.3% Variable Rate PPA, 39.1% PPA-EZs, and 37.8% lease agreements, including storage leases, by ADSAB. The weighted average original term of the SSAs is 287 months and the weighted average remaining term of the SSAs was 276 months. The weighted average FICO of the underlying customers of the PV Systems is 744.

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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.

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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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