KBRA Assigns Preliminary Ratings to Mill City Solar Loan 2019-1 Ltd. and Mill City Solar Loan 2019-1 LLC

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four
classes of notes issued by Mill City Solar 2019-1 Ltd. and Mill City
Solar 2019-1 LLC (“MCSLT 2019-1”). This is a $241.4 million term ABS
securitization collateralized by a pool of approximately $272.2 million
residential solar loans.

The Notes are backed by a pool of mostly prime quality residential
consumer solar loans originated to finance either a Solar Energy System
or a Solar Energy System with an Energy Storage System. Credit
enhancement on the Notes consists of i) overcollateralization ii) yield
supplement overcollateralization iii) subordination (in the case of
Class A, Class B and Class C notes) and iv) amounts on deposit in a
reserve account.

Paramount Equity Mortgage, LLC d/b/a Loanpal (“Loanpal”) was
incorporated in California in 2003 to provide residential mortgage
loans. In December 2017, Loanpal launched its current solar loan
origination platform where it originates loans to mostly prime credit
quality homeowners for the purpose of purchasing home improvements,
including solar panel systems and batteries. Headquartered in Roseville,
CA, Loanpal has originated and funded over $25 billion in total mortgage
and solar loan volume since inception, including $664 million in solar

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

To access ratings, reports and disclosures, click here.

Class     Preliminary Rating     Principal Balance
A     A (sf)     $210,689,000
B     BBB (sf)     $11,705,000
C     BB (sf)     $10,208,000
D     B (sf)     $8,847,000

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


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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, is 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.


Analytical Contacts:

William Carson, Senior Director


Michael Polvere, Senior Analyst


Eric Neglia, Managing Director


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