DBRS Morningstar Publishes Final Methodologies for Solar Contracts

DBRS Morningstar finalized its “Rating Solar ABS Transactions” methodology, as well as the new exhibits in its “Operational Risk Assessment for U.S. ABS Originators” (Exhibit 35: Sample Operational Risk Questions for U.S. Solar Contract Originators) and “Operational Risk Assessment for U.S. ABS Servicers” (Exhibit 36: Sample Operational Risk Questions for U.S. Solar Contract Servicers) methodologies and the new appendix (Appendix XXXIII—Rating Solar ABS Transactions) in its “DBRS Morningstar Master U.S. ABS Surveillance” methodology.

These methodologies present the criteria for which U.S. solar contract ratings are assigned and/or monitored.

Finalization of these methodologies follows the conclusion of the request for comment period that began on June 22, 2023.

DBRS Morningstar received nonmaterial comments during the request for comment period related to its “Rating Solar ABS Transactions” methodology. “Rating Solar ABS Transactions” is effective as of July 20, 2023.

The “Operational Risk Assessment for U.S. ABS Originators” and “Operational Risk Assessment for U.S. ABS Servicers” methodologies supersede the prior versions published on July 18, 2023, and are effective as of July 20, 2023.

The “DBRS Morningstar Master U.S. ABS Surveillance” methodology supersedes the version published on May 16, 2023, and is effective as of July 20, 2023.

All comments received during the request for comment period have been published to the DBRS Morningstar website, except in cases where confidentiality is requested by the respondent.

Notes:
The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

DBRS Morningstar methodologies are publicly available on its website www.dbrsmorningstar.com under Methodologies & Criteria.

For more information on this methodology or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].