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Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of notes from Vivint Solar Financing VII, LLC, Series 2020-1. The transaction is secured by the equity interests of the managing members in the related Project Companies that in the aggregate, own a portfolio of 22,914 power purchase agreements (PPA) and leases, associated with residential solar photovoltaic installations (PV Systems). Cash flow related to the portfolio is net of operations and maintenance expenses, administrative and insurance expenses and any distributions to a tax equity investor per the organizational documents for each respective Project Company.
The total aggregate discounted solar asset balance (ADSAB), consisting of the discounted payments of the leases and power purchase agreements is approximately $337.8 million. The securitization share of the ADSAB is approximately $293.1 million. The portfolio consists of approximately 90.0% PPA agreements and 10.0% lease agreements by ADSAB of Host Customer Solar Assets and approximately 90.8% PPA agreements and 9.2% lease agreements by number. The original tenor of each agreement is 240 months and the weighted average remaining term of the agreements is 221 months. The weighted average FICO of the underlying customers of the photovoltaic systems is 751.