KBRA Assigns Preliminary Ratings to Dividend Solar Loans 2019-1 LLC

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three
classes of notes issued by Dividend Solar Loans 2019-1, LLC (“DIV
2019-1”). This is a $234.59 million term ABS securitization
collateralized by a pool of $252.51 million residential solar loans.

This transaction is Dividend Finance, Inc.’s (“Dividend” or the
“Company”) fourth securitization collateralized by UCC-secured
residential consumer solar loans originated by DSF. Credit enhancement
for the Notes consists of i) overcollateralization ii) subordination (in
the case of Class A and Class B Notes) iii) excess spread and iv)
amounts on deposit in the reserve account. The loan collateral in the
transaction will include a pool of $252.51 million residential solar
loans from five different loan products that contain a combination of
interest-only periods and required or optional prepayment thresholds.

Dividend is a California based specialty lender providing financing in
the clean energy space through residential solar loans, home
energy-related home improvement loans, as well as residential and
commercial PACE assessments. Dividend was formed through the merger of
Dividend Solar, Inc. and Figtree Finance Company in 2016. Dividend
originates loans in 36 states and the District of Columbia through its
state lending licenses where required. Loans typically have original
balances of $10,000 – $50,000 (but may exceed this amount); original
loan terms of 12 or 20 years and fixed interest rates of 2.50% – 9.99%.
Depending on the loan type, these rates may step-up if certain incentive
payments are not made.

KBRA applied its Global
General Rating Methodology for Asset-Backed Securities and the Global
Structured Finance Counterparty Methodology as part of its analysis
of the transaction’s underlying collateral pool and the proposed capital
structure. KBRA also conducted an operational assessment of Dividend in
March 2018, as well as a review of the transaction’s legal structure and
transaction documents. KBRA will also review the operative agreements
and legal opinions for the transaction prior to closing.

To access the ratings, new issue report and disclosures, click here.

Related Publications: (available
at www.kbra.com)

• Global
  General Rating Methodology for Asset-Backed Securities
• Global
  Structured Finance Counterparty Methodology
• Dividend
  Solar Loans 2019-1 Pre-Sale Report

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus. KBRA is also recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.

Contacts

Analytical Contacts:

Eric Neglia, Managing Director
(646) 731-2456
eneglia@kbra.com

Jenny Ovalle, Director
(646) 731-2309
jovalle@kbra.com

Usman Khan, Associate Director
(646) 731-2488
ukhan@kbra.com