KBRA Assigns Preliminary Ratings to Tesla Sustainable Energy Trust 2024-1
28 Octubre 2024 - 1:34PM
Business Wire
KBRA assigns preliminary ratings to three classes (five
tranches) of notes totaling $500.00 million issued by Tesla
Sustainable Energy Trust 2024-1 ("TSET 2024-1" or the "Issuer"), an
ABS transaction secured by residental solar retail installment
contracts ("RIC").
TSET 2024-1 represents the inaugural term ABS securitization
collateralized by a pool of residential solar RICs originated by
Tesla, Inc. ("Tesla") and sold to Tesla Finance LLC (“Tesla
Finance” or the “Company”). The RICs will be used by obligors for
the purchase and installation of solar panels, energy storage
systems, and related equipment. Tesla Finance will act as the
Sponsor, Servicer and Administrator for this transaction. The
Company has previously sponsored one securitization comprised of
auto loans and nine securitizations comprised of auto leases.
Tesla Finance is a wholly owned subsidiary of Tesla and is based
in Palo Alto, California. Tesla Finance was formed in October 2013
as the captive finance company of Tesla and currently has
operations in 46 states. The Company provides financing for Tesla
customers to acquire Tesla vehicles, solar systems and/or energy
storage systems.
KBRA applied its General Global Rating Methodology for
Asset-Backed Securities as well as its Consumer Loan ABS Global
Rating Methodology, Global Structured Finance Counterparty
Methodology and ESG Global Rating Methodology. In applying the
methodologies, KBRA analyzed Tesla Finance's portfolio pool data,
underlying collateral pool and proposed capital structure under
stressed cash flow assumptions. KBRA considered its operational
review of Tesla Finance. Operative agreements and legal opinions
will be reviewed prior to closing.
To access ratings and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: General Global Rating Methodology for Asset Backed
Securities
- ABS: Consumer Loan ABS Global Rating Methodology
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. 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.
Doc ID: 1006582
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Analytical Contacts
Melvin Zhou, Managing Director (Lead Analyst) +1 646-731-2412
melvin.zhou@kbra.com
Zarif Ahmed, Associate Director +1 646-731-1367
zarif.ahmed@kbra.com
Brockton Bowers, Associate +1 646-731-2418
brockton.bowers@kbra.com
Hollie Reddington, Senior Director (Rating Committee Chair) +1
646-731-3375 hollie.reddington@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com