KBRA Maintains Watch Downgrade Placement on Eight Mosaic Solar Loan Trust Ratings

KBRA maintains its Watch Downgrade Placement on eight outstanding classes of notes from five Mosaic Solar Loan Trust transactions. The ratings were initially placed on Watch Downgrade on October 14, 2025 due performance deterioration and the increase in senior transaction fees following the execution of Administration Agreements between FB Solar Admin LLC (“FB Solar”) and each outstanding Issuer for these outstanding Solar Mosaic LLC (“Mosaic” or the “Company”) transaction.

The Administration Agreements include an increase in monthly administration fees, as well as the addition of uncapped fees that are senior in the waterfall to principal and interest payments on the rated notes, causing them to be more susceptible to negative rating migration.

On June 6, 2025, Mosaic filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. On September 5, 2025, the bankruptcy court approved the Company’s Plan for Reorganization, which included the recapitalization of Mosaic’s servicing business to Solar Servicing, LLC (“Solar Servicing”), a subsidiary of Forbright Bank. On September 18, 2025, Mosaic emerged from bankruptcy and new Servicing Agreements were executed between Solar Servicing and each outstanding Issuer, with Concord Servicing continuing in its role as Subservicer. There were no changes to the servicing fees defined in the Indenture.

Similarly, on September 18, 2025, new Administration Agreements were executed between each Issuer and FB Solar, a subsidiary of Forbright Bank. As part of the new agreements, the Administrator is owed a higher monthly Administration Fee than before Mosaic’s bankruptcy, along with newly added uncapped fees related to tax authority audits, rating agency coordination, tax preparation and filing, and litigation involving the Issuer, Underlying Trust or Underlying Trust Estate.

The table below displays the Watch Placements undertaken in this review.

Following the Watch Placements in October 2025, performance has continued to deteriorate. KBRA will continue to monitor the performance of the transactions and will seek to resolve or update the Watch Placements within 90 days. For additional information regarding a specific transaction, see the list below to access such transaction’s ratings, reports, and disclosures:

Methodologies