DBRS Morningstar Requests Comments on Proposed Methodologies for Solar Contracts

DBRS Morningstar is requesting comments on the following proposed new methodology as well as the proposed new exhibits and appendix for three methodologies (the RFC Methodologies), which may, upon the close of the Request for Comment period, supersede the versions published on the dates below:

-- “Rating Solar ABS Transactions”
-- “Operational Risk Assessment for U.S. ABS Originators” (Exhibit 35: Sample Operational Risk Questions for U.S. Solar Contract Originators) (April 5, 2023)
-- “Operational Risk Assessment for U.S. ABS Servicers” (Exhibit 36: Sample Operational Risk Questions for U.S. Solar Contract Servicers) (April 5, 2023)
-- “DBRS Morningstar Master U.S. ABS Surveillance” (Appendix XXXIII—Rating Solar ABS Transactions) (May 16, 2023)

The RFC Methodologies present the criteria for which U.S. solar contract ratings are assigned and/or monitored.

RATING SOLAR ABS TRANSACTIONS
Please refer to the “Rating Solar ABS Transactions” methodology, which presents the principal asset class methodology that DBRS Morningstar intends to apply to assign new credit ratings in the solar contract asset class following the finalization of the RFC Methodologies. The “Rating Solar ABS Transactions” methodology provides a discussion of the key analytical and credit considerations, collateral quality and metrics, legal and regulatory considerations, and cash flow analysis applicable to DBRS Morningstar’s analysis of solar contract asset class transactions.

SOLAR CONTRACT ORIGINATORS EXHIBIT AND SOLAR CONTRACT SERVICERS EXHIBIT
Please refer to Exhibit 35: Sample Operational Risk Questions for U.S. Solar Contract Originators in the “Operational Risk Assessment for U.S. ABS Originators” methodology and Exhibit 36: Sample Operational Risk Questions for U.S. Solar Contract Servicers in the “Operational Risk Assessment for U.S. ABS Servicers” methodology that formalize the sample list of questions DBRS Morningstar expects to use in the operational risk reviews of originators and servicers operating in the solar contract asset class upon the finalization of the RFC Methodologies.

APPENDIX XXXIII—RATING SOLAR ABS TRANSACTIONS
Please refer to Appendix XXXIII—Rating Solar ABS Transactions in the “DBRS Morningstar Master U.S. ABS Surveillance” methodology, which presents the criteria that DBRS Morningstar intends to apply in connection with the surveillance of new DBRS Morningstar credit ratings in the solar contract asset class following the finalization of the RFC Methodologies.

Comments should be received on or before July 6, 2023. Please submit your comments to the following email address:

sfcomments@dbrsmorningstar.com

DBRS Morningstar publishes on its website all comments received, except in cases where confidentiality is requested by the respondent.

Notes:
The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

DBRS Morningstar methodologies are publicly available on its website www.dbrsmorningstar.com under Methodologies & Criteria.

For more information on this methodology or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.