DBRS Assigns Provisional Rating to HERO Funding Trust 2015-3

DBRS, Inc. (DBRS) has today assigned a provisional rating of AA (sf) to the Class A Notes issued by HERO Funding Trust 2015-3.

The rating is based on a review by DBRS of the following analytical considerations:
-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. For this transaction, the rating addresses the payment of timely interest on a semi-annual basis and the payment of principal by the Scheduled Maturity.
-- The capabilities of Renovate America, Inc. with regards to originations and underwriting.
-- The legal structure and presence of legal opinions that address the true sale of the assets to the Issuer, the non-consolidation of the Depositor with the Company, that the trust has a valid first-priority security interest in the Collateral and the consistency with DBRS’s “Legal Criteria for U.S. Structured Finance” methodology.
-- Review of legal considerations specific to property-assessed clean energy (PACE).
-- Servicing is performed by local county tax collection offices.

Notes:
This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodology is Rating U.S. Property Assessed Clean Energy (PACE) Securitizations, which can be found on our website under Methodologies.

The full report providing additional analytical detail is available by clicking on the link or by contacting us at info@dbrs.com.