Morningstar DBRS Assigns Provisional Credit Ratings to Renew 2024-2

DBRS, Inc. (Morningstar DBRS) assigned provisional credit ratings to the following notes to be issued by Renew 2024-2 (the Transaction):

-- $138,561,000 Class A Notes rated AAA (sf)
-- $4,285,000 Class M Notes rated AA (sf)

CREDIT RATING RATIONALE/DESCRIPTION
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 coronavirus pandemic scenarios, which were first published in April 2020.
-- Transaction capital structure, proposed credit ratings, and form and sufficiency of available credit enhancement.
-- Credit enhancement is in the form of subordination, a liquidity reserve, and excess spread. Credit enhancement levels are sufficient to support the Morningstar DBRS-expected default, prepayment, and loss severity assumptions under various stress scenarios.
-- Adequacy of additional reserve to support representation and warranty buyback obligations in the event that Renew Financial Group LLC (Renew) does not/cannot honor its obligations.
-- The ability of the Transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. For this transaction, the credit ratings on the Class A and Class M Notes address the timely payment of interest on a semiannual basis and the payment of principal by the Legal Final Maturity.
-- The capabilities of Renew with regard to originations and underwriting.
-- Morningstar DBRS performed an operational review of Renew and considers the Company to be an acceptable originator of property assessed clean energy (PACE) Assessments.
-- The presence of Special District Services Inc. (SDS) as backup program administrator.
-- The legal structure and presence of legal opinions that address the true sale of the PACE Assets to the Issuer, the nonconsolidation of the Issuer with the Depositor, that the Issuer has a valid first-priority security interest in the PACE Asset Portfolio, and consistency with the Morningstar DBRS' Legal Criteria for U.S. Structured Finance.
-- Review of legal considerations specific to PACE.
-- Servicing is performed by local county tax collection offices.
-- In mid-2024 Renew identified a limited number of fraudulently originated assessments. No assessments related to the incident are included in the Transaction's collateral pool. Renew intends to promptly implement enhanced fraud prevention measures.
-- Commingling risks associated with the servicing of PACE Assessments by local county tax collection offices in California and Florida are mitigated by the protections afforded special revenue collections under Chapter 9 of the U.S. Bankruptcy Code and certain structural features, including a County Reserve Account.

Morningstar DBRS' credit rating on Class A and Class M Notes addresses the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations are the Note Principal and Note Interest Amount.
Morningstar DBRS' credit rating does not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction document(s) that are not financial obligations. None of which have been identified.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS 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.

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 (August 13, 2024), https://dbrs.morningstar.com/research/437781.

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

The principal methodology applicable to the credit ratings is Rating U.S. Property Assessed Clean Energy (PACE) Securitizations (August 6, 2024), https://dbrs.morningstar.com/research/437561.

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 credit rating process for these credit rating actions.

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

These are solicited credit ratings.

A provisional credit rating is not a final credit rating with respect to the above-mentioned securities and may change or be different than the final credit rating assigned or may be discontinued. The assignment of the final credit ratings on the above-mentioned securities are subject to receipt by Morningstar DBRS of all data and/or information and final documentation that Morningstar DBRS deems necessary to finalize the credit ratings.

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 6, 2024), https://dbrs.morningstar.com/research/437545
-- Rating U.S. Structured Finance Transactions (August 6, 2024), https://dbrs.morningstar.com/research/437571
-- Legal Criteria for U.S. Structured Finance (April 15, 2024), https://dbrs.morningstar.com/research/431205
-- RMBS Insight 1.3: U.S. Residential Mortgage-Backed Securities Model and Rating Methodology (only model referenced in this press release; June 28, 2024), https://dbrs.morningstar.com/research/435279

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