Robert Zilfer

Robert Zilfer from Raymond James asked about the significance of changing the default rate measurement in Sunrun's metric sensitivities and inquired about the typical default rates for Sunrun's more seasoned securitizations.

Answer

CFO Danny Abajian explained that the change in default rate measurement reflects evolving trends and aims to capture the full range of sensitivity, aligning with assumptions made by capital providers. He also noted a presentation change from cumulative to annual measures for clarity. For seasoned securitizations, Abajian stated that average annual default rates are typically between 50-75 basis points, though this can vary by FICO score, geography, and product. He added that rating agencies generally maintain or upgrade Sunrun's ratings based on asset performance.

Robert Zilfer asked about the significance of changing the default rate measurement in Sunrun's metric sensitivities and how the default rates of more seasoned securitizations typically compare to the new sensitivities.

Answer

CFO Danny Abajian explained that the change in default rate measurement aims to capture the full range of sensitivity and align with capital providers' assumptions, now presenting annual measures for clarity. He stated that for seasoned securitizations, average annual default rates are typically 50-75 basis points, varying by FICO score, geography, and product, noting that rating agencies have generally maintained or upgraded Sunrun's ratings based on asset performance.