Morningstar DBRS Confirms Ratings on Eight GoodGreen Transactions

DBRS, Inc. (Morningstar DBRS) confirmed its ratings on all classes of securities included in Eight GoodGreen Transactions.

The rating confirmations are based on the following analytical considerations:

-- The transaction assumptions consider Morningstar DBRS’s baseline macroeconomic scenarios for rated sovereign economies, available in its commentary “Baseline Macroeconomic Scenarios for Rated Sovereigns: December 2023 Update,” published on December 19, 2023. These baseline macroeconomic scenarios replace Morningstar DBRS’s moderate and adverse Coronavirus Disease (COVID-19) pandemic scenarios, which were first published in April 2020.

-- Transaction capital structure, current ratings and available credit enhancement.

-- The transactions benefit from credit enhancement in the form of overcollateralization, a liquidity reserve account, and excess spread. The senior notes also benefit from subordination from the lower classes, where applicable.

-- The ratings address the payment of timely interest on a semiannual or annual (transaction specific) basis and the payment of principal by their scheduled maturities.

-- Legal considerations specific to PACE including validity in all relevant jurisdictions. The obligation to pay the PACE assessments is transferable. Residential property assessed clean energy (PACE) assessments are paid at the same priority as property taxes. When a property is sold, the new owner is responsible for any outstanding PACE assessments and payment penalties as part of the purchase of the property. Additionally, protections are afforded to special revenue collections under Chapter 9 of the U.S. Bankruptcy Code, and certain structural features, including a County Reserve Account, mitigate commingling risks associated with the servicing of PACE assessments by local county tax collection offices.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://dbrs.morningstar.com/research/427030(Jan 23, 2024).

Notes:
All figures are in U.S. Dollars unless otherwise noted.

The principal methodology applicable to the ratings is Morningstar DBRS Master U.S. ABS Surveillance; https://www.dbrsmorningstar.com/research/422279 (October 22, 2023).

Other methodologies referenced in this transaction are listed at the end of this press release.

The credit rating was not initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

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

DBRS, Inc.
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New York, NY 10005 USA
Tel. +1 212 806-3277

The rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

Operational Risk Assessment for U.S. ABS Servicers (July 20, 2023)
https://www.dbrsmorningstar.com/research/417415

Operational Risk Assessment for U.S. ABS Originators (July 20, 2023)
https://www.dbrsmorningstar.com/research/417416

Legal Criteria for U.S. Structured Finance (December 7, 2023)
https://www.dbrsmorningstar.com/research/425081

Rating U.S. Structured Finance Transactions (October 30, 2023)
https://www.dbrsmorningstar.com/research/422592

Rating U.S. Property Assessed Clean Energy (PACE) Securitizations (May 24, 2022)
https://www.dbrsmorningstar.com/research/397234

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