Monthly Overview
November monthly remittance reports showed modest deterioration in credit performance for the aggregated solar loan ABS pool during the October collection period. Net losses in KBRA’s Solar Loan ABS index increased 31 basis points (bps) month-over-month (MoM) to 2.49%, reaching its highest level of 2024. Meanwhile, early-stage (30-59 days) delinquencies and late-stage (60-120 days) delinquencies were more stable this month, rising 1 bp and 4 bps, respectively. Additionally, on a year-over-year (YoY) basis, the index has shown performance deterioration since this time last year, with net losses up 89 bps as well as early- and late-stage delinquencies up 21 bps and 19 bps, respectively (see Figure 1 and Figure 2).
The rise in annualized net losses and delinquencies this year continues a more than three-year credit softening that began in mid-2021, when net losses bottomed out at 0.38% (see Figure 4 and Figure 5). Current index values, as well as MoM and YoY changes, are…