Morningstar DBRS Confirms Credit Ratings on Six Renew Transactions

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

CREDIT RATING RATIONALE/DESCRIPTION
Credit rating rationale includes the key analytical considerations.

-- 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 remained relatively stable or increased for all outstanding classes across all transactions.

-- The ratings for 2017-1, 2017-2, 2018-1, and 2024-1 address the payment of timely interest on a semi-annual basis and the ratings for 2023-1 Ltd. 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.

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

Renew 2023-1 Ltd.
Morningstar DBRS' credit rating on the Class A and B 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.

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.

Renew 2024-1
Morningstar DBRS' credit ratings on the Class A, Class M, and Class B notes address 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.

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.

Renew 2017-1, 2017-2, 2018-1, and 2021-1
Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

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:
The principal methodology applicable to the credit ratings is Morningstar DBRS Master U.S. ABS Surveillance (January 10, 2025) https://dbrs.morningstar.com/research/445740.

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 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.

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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 Originators and Servicers (December 05, 2024),
https://dbrs.morningstar.com/research/444162
-- Legal Criteria for U.S. Structured Finance (December 03, 2024),
https://dbrs.morningstar.com/research/444064
-- Rating U.S. Structured Finance Transactions (November 18, 2024),
https://dbrs.morningstar.com/research/443136
-- Rating U.S. Property Assessed Clean Energy (PACE) Securitizations (August 06, 2024)
https://dbrs.morningstar.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.