KBRA Assigns Preliminary Ratings to EverBright Solar Trust 2024-A

NEW YORK--(BUSINESS WIRE)-- KBRA assigns preliminary ratings to two classes of notes totaling $288.49 million issued by EverBright Solar Trust 2024-A (“EVBRT 2024-A”), an asset-backed securitization collateralized by a pool of residential solar retail installment contracts originated by EverBright, LLC ("EverBright" or the "Company").

Headquartered in Juno Beach, FL, EverBright was founded and organized as a limited liability company in Delaware in 2021 and fully launched its receivables origination program in early 2022. The Company is a subsidiary of NextEra Energy, Inc, which has been an energy producer since 1925 and is publicly listed on the New York Stock Exchange (NYSE: NEE) with a market cap of over $115 billion and total assets of $177 billion as of December 31, 2023.

EVBRT 2024-A is collateralized by a pool of solar receivables that are made to mostly prime quality customers to finance residential solar power generation and/or storage systems, including solar panels and any additional products, equipment or services related to installation. Currently, EverBright offers solar receivables with balances of $10,000 - $150,000, original terms of 10 - 25 years and interest rates of 3.99% - 10.99%.

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 EverBright’s portfolio pool data, underlying collateral pool and proposed capital structure under stressed cash flow assumptions. KBRA considered its operational review of EverBright, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.

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Methodologies

• ABS: General Global Rating Methodology for Asset Backed Securities
• ABS: Consumer Loan ABS Global Rating Methodology
• 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: 1003120

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Analytical Contacts

Melvin Zhou, Managing Director (Lead Analyst)

+1 646-731-2412

melvin.zhou@kbra.com

Michael Polvere, Associate Director

+1 646-731-3339

michael.polvere@kbra.com

Vicky Xiao, Analyst

+1 646-731-1422

vicky.xiao@kbra.com

Eric Neglia, Head of Commercial and Consumer ABS (Rating Committee Chair)

+1 646-731-2456

eric.neglia@kbra.com

Business Development Contact

Arielle Smelkinson, Senior Director

+1 646-731-2369

arielle.smelkinson@kbra.com

Source: Kroll Bond Rating Agency, LLC