Posted on 16306
Kroll Bond Rating Agency (KBRA) releases an update on the residential solar loan ABS sector, including a 2021 new issuance forecast, credit and competitive trends across the sector, and a comparison of solar loan ABS platforms.
Credit performance in the residential solar loan ABS sector has shown resilience through the COVID-19 pandemic and appears likely to remain stable in 2021. Originations continue to rise as issuers are becoming more competitive in their product offerings. In addition, the industry may be further buoyed by federal policies from a new administration that has indicated its support of renewable energy.
As a result of positive trends in the sector, KBRA expects residential solar ABS issuance from public transactions to reach over $2 billion in 2021. Other positive drivers include the sector’s favorable credit performance, yield, and positive ESG attributes.