DBRS Confirms Ratings on Four PACE Securities

DBRS, Inc. (DBRS) confirmed four securities issued by three transactions backed by property assessed clean energy assets. Performance for the securities is such that credit enhancement levels are sufficient to cover DBRS’s loss expectations at their current respective rating levels.

The transactions reviewed include the following:

-- HERO Funding II 2016-3B
-- HERO Funding II 2016-4B
-- HERO Residual Funding 2016-1R (Cayman)

The ratings are based on DBRS’s review of the following analytical considerations:

-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- The transaction parties’ capabilities with regard to origination, underwriting and servicing.
-- The credit quality of the collateral pool and historical performance.

On December 20, 2018, this press release was amended to remove language that inadvertently stated the ratings were based on amendments made to the transaction.

Notes:
The principal methodology is the DBRS Master U.S. ABS Surveillance Methodology, which can be found on dbrs.com under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

Please see the attached appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.