KBRA Assigns Preliminary Ratings to New York State Energy Research and Development Authority Residential Clean Energy and Energy Efficiency Financing Green Revenue Bonds, Series, 2024A
June 17 2024 - 6:43PM
Business Wire
KBRA assigns preliminary ratings to NYSERDA Green Revenue Bonds,
Series 2024A (“NYSERDA 2024A”), a consumer solar loan and home
improvement loan ABS transaction.
This transaction represents New York State Energy Research and
Development Authority’s (“NYSERDA” or the “Authority”) first term
ABS securitization of 2024 and sixth KBRA-rated securitization.
NYSERDA will issue a $14.85 million term bond and nine serial bonds
which total $30.88 million. The serial bonds have maturity dates
ranging from 2025 through 2033 and the term bonds mature in 2039.
The NYSERDA 2024A Bonds are not guaranteed by NYSERDA and are
non-recourse. The transaction is structured with all bonds
supported by overall enhancement of 42.77% (overcollateralization
plus amounts deposited into the reserve account). The credit
enhancement levels are sufficient to cover KBRA’s corresponding
stressed cash flow assumptions for the rating on the bonds.
NYSERDA is a public benefit corporation created in 1975 pursuant
to the Public Authorities Law of the State of New York. The
Authority is dedicated to the development and adoption of energy
conservation technologies consistent with economic, social and
environmental objectives across the state. To this end, NYSERDA
offers solar and energy efficiency loans to one-to-four family
residential structures for eligible projects, as dictated by
NYSERDA’s Green Jobs - Green New York program (“GJGNY
Program”).
KBRA applied the General Global Rating Methodology for
Asset-Backed Securities as well as its Global Structured Finance
Counterparty Methodology and ESG Global Rating Methodology as part
of its analysis of the portfolio pool data, underlying collateral
pool, and capital structure. KBRA considered its operational
reviews of NYSERDA, as well as periodic due diligence calls with
the Authority. Operative agreements and legal opinions will be
reviewed prior to closing.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: General Global Rating Methodology for Asset Backed
Securities
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ABS: Consumer Loan ABS Global Rating 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: 1004776
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Analytical Contacts
Michael Polvere, Associate Director (Lead Analyst) +1
646-731-3339 michael.polvere@kbra.com
Juhi Paranjape, Senior Analyst +1 646-731-1340
juhi.paranjape@kbra.com
Melvin Zhou, Managing Director (Rating Committee Chair) +1
646-731-2412 melvin.zhou@kbra.com
Business Development Contact
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com