KBRA Places One Osprey Securitization I, LLC Rating on Watch Downgrade
4 Feb 2026 | New York
KBRA has placed the rating on the Class B Notes of Osprey Securitization I, LLC, a commercial and industrial (C&I) solar ABS transaction secured by future project revenues from a portfolio of C&I photovoltaic (PV) systems, on Watch Downgrade owing to a sequential interest amortization event occurring on the January 30, 2026 payment date. The sequential interest amortization event was caused by the 12-month rolling debt service coverage ratio (DSCR) declining to 1.00x. According to the company, due to an accounting error, certain funds were inadvertently excluded from the DSCR calculation. Under the sequential interest amortization payment priority, all collections after paying senior expenses are applied to Class A interest and principal, while Class B interest is deferred until the sequential interest amortization event is cured.
Notwithstanding the sequential interest amortization event, Class B received its interest payment on the January 2026 Payment Date instead of the funds being used to pay down Class A principal. The company has acknowledged that such payments were erroneous and expects to take steps to correct the allocation.
The table below displays the current capital structure. To date, the securities have received timely interest payments.
Distributed Solar Development, LLC (DSD or the Company) is a developer and owner of PV systems, consisting of rooftop, canopy, ground mount, and battery energy storage systems across the United States. DSD has multiple C&I solar project origination channels, including asset acquisition and direct origination. As of December 2025, DSD has developed and deployed over 600 MW across more than 550 projects, and over 107 MW of projects still in construction or development.
KBRA will continue to monitor the performance of the transaction and will seek to resolve or update the Watch Placement within 90 days.
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