Morningstar DBRS Confirms Credit Ratings on two Clean PACE Transactions

DBRS, Inc. (Morningstar DBRS) confirmed its credit ratings on all classes of securities included in two CLEAN PACE Transactions.

CREDIT RATING RATIONALE/DESCRIPTION
-- Transaction capital structure, current credit ratings, and sufficient cash flow from the underlying trusts.

-- Stable or increasing credit enhancement (CE) is in the form of overcollateralization, liquidity reserve account, and excess spread with senior notes benefiting from subordination of junior notes, if any.

-- The value of the commercial properties that secure the underlying assessments relative to the outstanding balance of the assessments and the priority of the assessments being senior to a first-lien mortgage.

-- Strong collateral performance as evidenced by low delinquencies.

-- The transaction assumptions consider Morningstar DBRS' baseline macroeconomic scenarios for rated sovereign economies, available in its commentary "Baseline Macroeconomic Scenarios For Rated Sovereigns: June 2024 Update," published on June 28, 2024. These baseline macroeconomic scenarios replace Morningstar DBRS' moderate and adverse COVID-19 pandemic scenarios, which were first published in April 2020.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS

There were no Environmental/Social/Governance factor(s) 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 Factors in Credit Ratings at https://dbrs.morningstar.com/research/437781 (August 13, 2024).

Notes:
The principal methodology applicable to the credit ratings is Morningstar DBRS Master U.S. ABS Surveillance (August 6, 2024) https://dbrs.morningstar.com/research/437535.

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

The credit rating was 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 actions.

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.
140 Broadway, 43rd Floor
New York, NY 10005 USA
Tel. +1 212 806-3277

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 Originators and Servicers (August 06, 2024)
https://dbrs.morningstar.com/research/437545

Legal Criteria for U.S. Structured Finance (April 15, 2024)
https://dbrs.morningstar.com/research/431205

Rating U.S. Structured Finance Transactions (August 06, 2024)
https://dbrs.morningstar.com/research/437571

Rating U.S. Property Assessed Clean Energy (PACE) Securitizations (August 06, 2024)
https://www.dbrsmorningstar.com/research/437561

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