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Brighte receives upgraded ratings of notes from Moody’s

Brighte, a leading green financier on a mission to make every home sustainable, today received a boost with Moody’s Investors Services (“Moody’s”) upgrading the ratings of A, B, C, D, and E Notes from the Brighte Green Trust 2020-1.

By Nigel Freitas

22 September 2021

The $190 million green bond issuance was Brighte’s first and achieved a Aa2 (AA equivalent) rating for the Class A senior notes. It was also Australia’s first certified 100% green asset-backed securitisation and the largest green bond issuance in 2020 by an Australian Fintech.

According to Moody’s, the upgrades were driven by an increase in note subordination, the good performance of the underlying portfolio and Brighte's operational track record.

The credit ratings agency also lowered its portfolio credit enhancement assumption, taking into account Brighte’s strong and stable performance since the first transaction.

Brighte Founder and CEO, Katherine McConnell, welcomes the upgrades with debt issuance playing a crucial role in the affordability and acceleration of solar and battery uptake.

“Pandemic or not, Aussies haven’t lost their appetite for rooftop solar, with new records set over the past year. But often upfront costs are barriers to these enhancements and finance can be the solution.

“This action by Moody’s validates our approach to underwriting and servicing, and is going to further enable us to reach our goal of creating sustainable homes powered by Brighte.”

The cumulative loss on the Brighte Green Trust 2020-1 portfolio of 0.3% (of original portfolio balance) compares very favourably with other consumer ABS deals.

Brighte won green bond of the year at the 2021 Environmental Finance awards.