KBRA Assigns Preliminary Ratings to FortiFi 2024-1, Series 2024-1
June 24 2024 - 4:08PM
Business Wire
KBRA assigns preliminary ratings to three classes of notes
issued by FortiFi 2024-1, Series 2024 (FortiFi 2024-1). The notes
are newly issued asset-backed securities backed by a portfolio of
Property Assessed Clean Energy (PACE) Bonds.
The Class A Notes, Class B Notes and Class C Notes (together,
the Notes) are secured by a portfolio of PACE bonds (PACE Bonds)
acquired by FortiFi 2024-1 (the Issuer) at closing (the PACE Bond
Portfolio). The PACE Bond Portfolio consists of limited obligation
improvement bonds issued or to be issued by California Statewide
Communities Development Authority (CSCDA), via the CSCDA Open PACE
Program, and by Florida PACE Funding Agency (FPFA), via the FPFA
PACE Program (together with CSCDA Open PACE Program, the PACE
Programs). The PACE Bonds are secured by 4,874 PACE assessments
levied against 4,861 residential properties, which represent 99.1%
of the transaction collateral by balance and 13 commercial
properties (0.9%) in 28 Florida counties and 38 California
counties. The transaction benefits from credit enhancement in the
form of excess spread, a liquidity reserve account and, in the case
of the Class A Notes, subordination.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: U.S. Property Assessed Clean Energy (PACE) Securitization
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: 1004874
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version on businesswire.com: https://www.businesswire.com/news/home/20240624194165/en/
Analytical Contacts
Kenneth Martens, Senior Director (Lead Analyst) +1 646-731-3373
kenneth.martens@kbra.com
Oluwatobi Tofade, Senior Analyst +1 646-731-1277
oluwatobi.tofade@kbra.com
Joanne DeSimone, Managing Director, ABS Commercial (Rating
Committee Chair) +1 646-731-2306 joanne.desimone@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com