KBRA assigns preliminary ratings to three classes of notes issued by FortiFi 2024-1, Series 2024 (FortiFi 2024-1). The notes are newly issued asset-backed securities backed by a portfolio of Property Assessed Clean Energy (PACE) Bonds.

The Class A Notes, Class B Notes and Class C Notes (together, the Notes) are secured by a portfolio of PACE bonds (PACE Bonds) acquired by FortiFi 2024-1 (the Issuer) at closing (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 Open PACE Program, the PACE Programs). The PACE Bonds are secured by 4,874 PACE assessments levied against 4,861 residential properties, which represent 99.1% of the transaction collateral by balance and 13 commercial properties (0.9%) in 28 Florida counties and 38 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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Methodologies

• ABS: U.S. Property Assessed Clean Energy (PACE) Securitization Rating Methodology
• Structured Finance: 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.

Doc ID: 1004874

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