Morningstar DBRS Confirms Credit Ratings on Five Renew Transactions

DBRS, Inc. (Morningstar DBRS) confirmed the credit ratings on all classes of securities included in Five Renew transactions.

The credit rating confirmations are based on the following analytical considerations:

-- The transaction assumptions consider Morningstar DBRS' baseline macroeconomic scenarios for rated sovereign economies, available in its commentary, "Baseline Macroeconomic Scenarios For Rated Sovereigns: March 2024 Update," published on March 27, 2024 These baseline macroeconomic scenarios replace Morningstar DBRS' moderate and adverse coronavirus pandemic scenarios, which were first published in April 2020.

-- Transaction capital structure, current credit 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 credit enhancement levels have increased for all outstanding classes across all transactions.

-- The ratings for 2017-1, 2017-2, and 2018-1t address the payment of timely interest on a semi-annual basis and the ratings for 2023-1 address the payment of timely interest on an annual basis and all ratings address the payment of principal by their scheduled maturities. For 2021-1, the ratings address the payment of timely interest on a semi basis and the payment of principal by their scheduled maturities. For the class B notes, the ratings address the ultimate payment of interest and ultimate payment of principal by the legal final maturity. PACE Assessments have equal-lien priority with such property taxes or other special taxes/assessments secured by the same property.

-- Legal considerations specific to property assessed clean energy (PACE) assessments, including validity in all relevant jurisdictions. The obligation to pay the PACE assessments is transferable. Residential 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.

DBRS Morningstar's credit rating on the securities referenced herein addresses the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations for each of the rated notes are the related Note Interest Amount and the related Note Balance.

DBRS Morningstar's credit ratings do not address non-payment risk associated with contractual payment obligations contemplated in the applicable transaction document(s) that are not financial obligations. The associated contractual payment obligation that is not a financial obligation is the related interest on unpaid Note Interest for each of the rated notes.

DBRS Morningstar's long-term credit ratings provide opinions on risk of default. DBRS Morningstar considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The DBRS Morningstar short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental, Social, or 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, (January 23, 2024).

Notes:
The principal methodology applicable to the credit ratings is Morningstar DBRS Master U.S. ABS Surveillance (February 22, 2024), https://dbrs.morningstar.com/research/428506.

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

The credit ratings were initiated at the request of the rated entity.

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

Morningstar DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with these rating actions.

These are solicited credit ratings.

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

-- Operational Risk Assessment for U.S. ABS Servicers (March 21, 2024),
https://dbrs.morningstar.com/research/430003
-- Operational Risk Assessment for U.S. ABS Originators (March 21, 2024),
https://dbrs.morningstar.com/research/430004
-- Legal Criteria for U.S. Structured Finance (April 15, 2024),
https://dbrs.morningstar.com/research/431205
-- Rating U.S. Structured Finance Transactions (April 15, 2024),
https://dbrs.morningstar.com/research/431204
-- Rating U.S. Property Assessed Clean Energy (PACE) Securitizations (May 24, 2022)
https://www.dbrs.morningstar.com/research/397234

For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at [email protected].