KBRA assigns preliminary ratings to two classes of notes issued by FortiFi 2023-1, Series 2023-1 (“FortiFi 2023-1”, LLC. The notes are newly issued asset-backed securities backed by a portfolio of Property Assessed Clean Energy (“PACE”) Bonds.

The Class A Notes and Class B Notes (together, the “Notes”) are secured by a portfolio of PACE bonds (“PACE Bonds”) acquired by FortiFi 2023-1 (the “Issuer”) at closing (the “Initial PACE Bonds”) and during the Prefunding Period (the “Subsequent PACE Bonds” and together with the Initial PACE Bonds, 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 PACE Program, the “PACE Programs”). The Initial PACE Bonds are secured by 5,025 PACE assessments levied against 5,007 residential properties and 18 commercial properties (“PACE Assessments”) in 41 Florida counties and 33 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.

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Related Publications

• U.S. Property Assessed Clean Energy (PACE) ABS Rating Methodology
• 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.

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