DBRS Finalizes U.S. Property Assessed Clean Energy (PACE) Securitizations Methodologies and Confirms Outstanding Rating

DBRS, Inc. (DBRS) finalized its “Rating U.S. Property Assessed Clean Energy (PACE) Securitizations,” which includes a new Appendix A: Commercial PACE (C-PACE) Assessments (the PACE Methodology). DBRS also finalized its new exhibits in the “Operational Risk Assessment for U.S. ABS Originators” and “Operational Risk Assessment for U.S. ABS Servicers” methodologies for C-PACE securitizations and new components in the existing Appendix XVIII – Property Assessed Clean Energy Assessments of the “DBRS Master U.S. ABS Surveillance Methodology.”

Publication of these methodologies follows the conclusion of the Request for Comment period that began on May 24, 2019. All comments received during the Request for Comment period have been published to the DBRS website, except in cases where the confidentiality is requested by the respondent. Comments were received on sections of the PACE Methodology not subject to the Request for Comment period. As a result of those comments, DBRS made certain non-material clarifying edits to the following two sections: Industry Overview and Legal Considerations for PACE Programs.

This PACE Methodology supersedes the previous version published in October 2018 and is effective as of July 31, 2019.

The “Operational Risk Assessment for U.S. ABS Originators” and the “Operational Risk Assessment for U.S. ABS Servicers” methodologies were each updated to include a new Commercial Property Assessed Clean Energy Exhibit and supersede the previous versions published in December 2018 and May 2019, respectively. The effective date of the two methodologies is July 31, 2019.

The Appendix XVIII – Property Assessed Clean Energy Assessments, inclusive of new components related to C-PACE, in the existing “DBRS Master U.S. ABS Surveillance Methodology,” supersedes the previous version published in March 2019 and is effective as of July 31, 2019.

Following the finalization of the Rating U.S. Property Assessed Clean Energy (PACE) Securitizations and related methodologies and exhibits, DBRS confirmed the AAA (sf) rating on the Class A Notes issued by CleanFund Commercial PACE 2018-1 LLC.

DBRS notes that the above press release was amended on October 10, 2019, to state that comments received during the Request for Comment period were published to the DBRS website. The amendment was minor and would not impact the understanding of the reader.

Notes:
DBRS criteria and methodologies are publicly available on its website http://www.dbrs.com under Methodologies & Criteria.

The principal methodologies are Rating U.S. Property Assessed Clean Energy (PACE) Securitizations, Operational Risk Assessment for U.S. ABS Originators, Operational Risk Assessment for U.S. ABS Servicers and Master U.S. ABS Surveillance Methodology, which can be found on dbrs.com under Methodologies & Criteria.

The rated entity or its related entities did not participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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

For more information on these methodologies or industries, visit www.dbrs.com or contact us at info@dbrs.com.

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