Stable Outlook for PACE ABS in 2022 Amid Expected Market Expansion for C-PACE

Despite a challenging environment amid the ongoing Coronavirus Disease (COVID-19) pandemic, the property assessed clean energy (PACE) industry remained resilient in 2021. From a credit perspective, DBRS Morningstar has a stable outlook for PACE assets in 2022. We believe both commercial PACE (C-PACE) and residential PACE (R-PACE) securitizations will continue to perform as expected as they did in 2021. To date, delinquencies have been minimal and principal losses have been nonexistent across DBRS Morningstar-rated PACE securitizations.